Ethereum: Will ETFs Push ETH Price to $4,000 or Will They Push It to $2,400?

Journalist

• Analysts warn ETH could drop to $2,400 after ETF launch
• Another market observer blamed BTC, SOL, and macro conditions for the negative sentiment on ETH.

Expectations Ethereum [ETH] Analysts have mixed opinions on the ETF.

At the time of publication, ETH had fallen to a low of $3,200. This is an 18% decline from its recent high of $3,900 following the partial approval of the ETFs in late May.

Andrew Kang, founder and CEO of Mechanism Capital, predicted that Ethereum would drop to $2,400 in the days leading up to the launch of an ETF. His recent analysis [Read more]

“I expect ETH to trade between $3,000 and $3,800 ahead of the ETF launch. After the ETF launch, I expect ETH to trade between $2,400 and $3,000.”

Kang said that ETH ETF inflow could be low in the first few weeks due to two factors.

The SEC’s sudden 180-degree turnaround and approval of ETFs in late May came as a surprise and limited the time available to convince large ETH investors to switch to ETFs.

Kang also noted that the move to ETFs does not bring any benefits for staking. He estimated that ETH ETFs would attract only 30% of BTC ETF inflow in the first 6 months, or about $1.5 – 4 billion.

The negative sentiment towards Ethereum has other reasons

Quinn Thompson is the founder of Lekker Capital’s crypto hedge fund. [You can also check out our recommended article] The negative ETH sentiment is due to it being in the shadow of BTC. Solana [SOL].

Thompson said that SOL pricing ETH further validates the “ETH killer” narrative.

SOL is 6x higher in price than ETH, meaning it is not as easy to invest as it once was.

Thompson noted that BTC ETFs and the high interest in SOL at low prices further insulated ETH, leading to a “middle child syndrome.”

“Add to that the fact that overall prices have been stagnant or declining for three months, market sentiment has also gone into crisis due to a macro/liquidity issue.”

Other analysts such as QCP Capital maintained a bullish view ahead of the ETF’s launch in early July. [Note:]

ETH Vols trades at an 18% premium to BTC in anticipation of an upcoming ETH Spot ETF launch.

QCP analysts have previously worked with QCP [Below is a list of scheduled dates] A retest of $4,000 is possible after the ETF launch. At the time of publication, ETH was trading at $3,200. It remains to be seen what impact ETFs will have on volatility and price direction.