Andrew Kang, co-founder of Mechanism Capital, predicts a potential drop in Ethereum’s price amidst rising tensions in U.S.-China trade relations.
Reasons for Potential Ethereum Drop to $2.2K–$2.4K
Several factors could contribute to a potential ETH price decline. China recently imposed new tariffs on U.S. goods, escalating the trade conflict, leading to market uncertainty and potential sell-off in risk assets, including Ethereum. Kang also points out that Ethereum faces critical resistance at the $2.9K–$3K range. If ETH fails to break through, a pullback to lower support levels is likely. Additionally, the broader crypto market weakness, with high Bitcoin dominance, suggests challenges for altcoins like ETH. Macroeconomic factors, including interest rate expectations, could further pressure ETH.
Can Ethereum Hold Above $2.4K?
Bullish Scenario: If institutional demand for ETH ETFs continues, Ethereum could remain stable, with network upgrades like Dencun providing long-term support. Alternatively, Bearish Scenario: Further trade war escalation could lead to a broader risk-off sentiment. If Bitcoin retraces, Ethereum could follow, and profit-taking at the $2.9K–$3K resistance could also push ETH lower.
Conclusion
Andrew Kang's Ethereum forecast highlights the potential downside risk for ETH amid U.S.-China trade tensions. While ETH faces resistance at $2.9K–$3K, a major escalation in trade conflicts could trigger a drop to $2.2K–$2.4K. Traders should closely monitor global macro trends and Ethereum’s key support levels in the coming weeks.
Andrew Kang’s forecast highlights potential downside risks for ETH amid trade tensions. Monitoring macro trends and key support is crucial.
