Experienced Analyst Explained: "Ethereum Price May Return to This Range for the Remainder of the Year"

Andrew Kang, a partner at Mechanism Capital and a veteran market analyst, expressed concerns about Ethereum's current market cap (ETH), predicting that it could fall to the $1,000 to $1,500 range within the year.

In a social media post, Kang shared his thoughts, saying, "I haven't paid much attention to the crypto market in the last few months, but now it seems likely that Ethereum will return to the range of 1,000 to 1,500 dollars this year."

Kang criticized the asset's market capitalization of 215 billion dollars, pointing to the disconnect between Ethereum's valuation and the underlying fundamentals. He stated that it seemed "absurd" for Ethereum to maintain such a market capitalization, especially considering that growth and earnings are negative and the speculative boom in the crypto market has clearly diminished. He added, "The downward trend is still valid."

The price of Ethereum is going through a significant decline at the time this article is being written and is trading at $1,582. The world's largest altcoin has lost 11% of its value in the last 24 hours, wiping billions of dollars from its market capitalization.

On the other hand, during the same time period, the drop rate on the Bitcoin side was 5%.