A repeatable tutor spell on a stick is a very attractive offering. But Varragoth doesn't seem to fit anywhere except the commander format, where players will feel less pressure to pay 5 Mana for finding a specific card.
In any other format it's just too expensive and not worth the effort. The price it's getting right now is based on the tutor effect, which has always been very influential. But the way it is implemented in this card is just too slow for any constructed format.
Just like Resplendent Marshal this should go down in price in the near future, which is indicated by the alternative art that doesn't seem to hold the price too well either.