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- Analyst warns that ETH could reach $2.4K after ETF launch
- Another market observer blamed macro conditions, BTC and SOL, for ETH’s negative sentiment.
Expectations from Ethereum [ETH] ETFs were down, and analysts had mixed views on the matter.
As of press time, Ethereum has fallen to a low of $3.2K, an 18% decline from its recent high of $3.9K following partial approval of ETFs in late May.
With just days left for the potential launch of the ETF, Andrew Kang, founder of cryptocurrency fund Mechanism Capital, expects the price of ETH to fall further to $2.4K. Part of his final analysis is reading,
“Before the ETF launch, I expect ETH to trade from $3,000 to $3,800. After the ETF launch, I expect it to trade between $2,400 to $3,000.
Kang suggested that ETH ETF flows could be poor in the first few weeks for two reasons.
First, the 180-degree pivot the SEC approved in late May was a surprise move that limited the time to convince large ETH holders to move into ETFs.
Second, Kang pointed out that moving to an ETF does not come with the perks of betting returns. As a result, it has been estimated that the ETH ETF could attract only 30% of the BTC ETF’s inflows in the first six months, roughly $1.5 to $4.5 billion.
Other reasons for negative sentiment for Ethereum
For his part, Quinn Thompson, founder of cryptocurrency hedge fund Lekker Capital, said: Proposal The negative sentiment for ETH stems from it being under the shadow of BTC and… Solana [SOL].
Thompson added that the repricing of SOL relative to ETH reinforced the “ETH killer” narrative.
“SOL has requoted 6x higher compared to ETH, so this is not as easy as it used to be.”
Thompson also noted that Bitcoin ETFs and significant interest in low-priced SOL have further alienated Ethereum into a “middle child syndrome.” Moreover, the liquidity crisis made matters worse.
“Furthermore, overall prices have remained stagnant to low for 3 months and market sentiment is at rock bottom due to macroeconomic volatility/liquidity.”
Despite the negative sentiment, other analysts, such as QCP Capital, maintained optimistic forecasts ahead of the ETF’s launch in early July. male,
“ETH’s bullish trend continues with ETH volumes trading at a premium of 18% versus BTC in anticipation of the imminent launch of an ETH spot ETF.”
He was previously QCP analysts Expected The $4k would have been retested after the ETF was launched. As of press time, ETH is trading at $3.2K, and it remains to be seen how the ETF will determine volatility and price direction.
