Andrew Kang, a partner at Mechanism Capital and a seasoned market analyst, expressed concerns about the current market value of Ethereum (ETH), predicting that it could drop to the $1,000 to $1,500 range within the year.
“I haven’t paid much attention to the crypto market in the past few months, but now it looks like Ethereum is likely to return to the $1,000 to $1,500 range this year,” Kang said in a social media post.
Kang criticized the asset’s $215 billion market cap, pointing out the disconnect between Ethereum’s valuation and its underlying fundamentals. He noted that it seemed “absurd” for Ethereum to maintain such a market cap while growth and earnings were negative, especially considering that the speculative boom in the cryptocurrency market has clearly abated. “The downtrend is still valid,” he added.
At the time of writing, Ethereum is going through a major decline and is trading at $1,582. The world’s largest altcoin has lost 11% in the last 24 hours, wiping out billions of dollars from its market value.
On the other hand, the decline rate on the Bitcoin side was 5% in the same time period.
*This is not investment advice.
