Mechanism Capital: Ethereum Price Could Drop 30% Following ETFs Launch
According to Andrew Kang, founder and partner at Mechanism Capital, the launch of spot Ether exchange-traded funds (ETFs) could cause a significant drop in Ether’s price, potentially down to $2,400.
This would mark a nearly 30% decrease. Kang shared his prediction in a June 23 post on X, stating that unlike Bitcoin, Ether does not attract as much institutional interest, there are limited incentives to convert it into ETF form, and the network’s cash flows have not been impressive.
He believes that an ETF for Ether would not have much upside potential. Kang goes on to say:
After the ETF launch my expectation is $2,400 to $3,000.
This projected price would be a significant decrease from Ether’s previous peak of over $4,000 in March, coinciding with Bitcoin’s all-time high. The price almost reached this level again just before the US Securities and Exchange Commission (SEC) approved Ether ETFs.
