Mechanism Capital founder disputes Tom Lee's bullish ETH prediction

Andrew Kang, co-founder of crypto trading firm Mechanism Capital, has argued that the recent ETH analysis from Fundstrat founder Tom Lee is unconvincing. In a post on X, Kang stated that it is a mistake to expect a parabolic rally similar to past cycles based on ETH's recent rebound, adding that technical indicators are strengthening bearish signals. Kang noted that while the ETH/BTC chart shows a range-bound structure, it has been in a clear downtrend for the past several years. He asserted that the narrative for Ethereum has been exhausted and its fundamentals do not support further valuation growth. Kang described ETH's current market capitalization as being close to a bubble, suggesting that while speculative buying could inflate its price in the short term, similar to XRP, such levels would be difficult to sustain. Lee previously stated that he expects ETH to reach between $10,000 and $12,000 by the end of the year.