 
 
Despite Ethereum (ETH) already suffering from bearish pressure and losing approximately 56% from its December 2024 high, Andrew Kang, partner at Mechanism Capital and former CFO at MicroStrategy, believes the decline may not be over.
He predicts ETH could experience further significant losses and potentially revisit the $1,000-$1,500 range within the year.
Revealing his sentiment on Sunday, Kang tweeted, “I haven’t paid close attention to crypto last few months but it seems high probability that ETH revisits $1000-1500 this year.”
Notably, Kang’s assessment focuses on fundamentals, questioning the sustainability of Ethereum’s valuation given its current economics. “$215B market cap for a negative growth/profitability asset is ridiculous when it’s clear speculative winds have already blown past.” He added.
This bearish outlook aligns with his consistent stance from last year when he compared Ethereum to Intel, suggesting the cryptocurrency had potentially already seen its peak.
 
“Tell me how you pitch 200x PS, negative revenue growth, and negative profitability to investors at a $420B price,” he had challenged in a June 2024 post.
At the time, he argued that while cryptocurrency enthusiasts might support such valuations, traditional finance institutions would be unlikely to invest heavily without improved economic indicators.
The analyst has been notably accurate in previous predictions. When BlackRock filed for a Bitcoin spot ETF application in June 2023, Kang was vocally bullish on Bitcoin at around $25,000, which subsequently returned 2.6x, while Ethereum returned 2.1x during the same period. To date, the pundit remains skeptical about Ethereum ETFs providing a similar upside, stating they would need “a compelling pathway to improve its economics.”
Kang’s bearish tone aligns with that of other market observers. On Sunday, analyst Ali Martinez highlighted that Ethereum has broken out of a multi-year triangle pattern, setting $1,150 as the next major target.
Earlier, Martinez also noted a concerning trend: Whale accounts on the Ethereum network have declined by 10% since February, dropping from 999 to 896. Approximately 500,000 ETH were sold by large holders between Wednesday and Thursday, suggesting a continued price drop.
That said, not all analysts share this bearish outlook. Crypto Bullet told his 168,000 followers on X that Ethereum recently hit its 300-week Moving Average, a level previously reached only during the June 2022 bear market bottom. He suggested this represents “a very important support level” that could trigger a “good mid-term bounce” with a target of $2,900-$3,200.
Meanwhile, Rekt Capital observed that Ethereum’s market dominance has plummeted from 20% to 8% since June 2023 while noting that historically, Ethereum has reversed from similarly low levels to regain market dominance.
AT press time, ETH was trading at $1,559, reflecting a 3.81% drop in the past 24 hours.
