Cryptocurrency experts predict a sharp collapse for Ethereum

The co-founder of the venture capital company Mechanism Capital said that the ethereum rate could be adjusted by 30% after the approval of ETH spot exchange-traded funds (ETFs).

According to Andrew Kang, at this stage, ETH attracts much less attention from institutional investors compared to bitcoin. ETH-ETFs will be able to attract only 15% of the funds that BTC-based cryptocurrency exchange-traded funds received at the start, the expert noted.

«I believe that the community’s expectations are too high and do not meet the real needs of traditional finance. Naturally, those who are deep in the crypto space and share the vision of the project are buying ETH, but its price may adjust to $ 2,400 in the near future,» Kang said.

The expert noted that the ethereum ecosystem needs to be positioned as a decentralized level of financial settlement, a global computer or a Web3 application store to increase its attractiveness among investors. At the same time, Kang pointed out that it will be difficult to sell new ideas on the use of ETH to funds, as the asset is perceived by companies as an overvalued share of one large technology organization.