I believe it is certainly fair to say this will cause a short-term drop in price of ETH. We have already seen a 7-8% drop vs USD and a 20-25% drop vs BTC just in the past 24 hours. Now some of this has to do with recent Bitcoin news but I do think there are some people who have dropped ETH to pick up BTC.

Now I do think ETH Foundation will fix the problem, mostly because they have to because crypto kitty has exposed a real issue that could cause a collapse of ETH. Because of this, I think is poses an opportunity for ETH investors to buy in as this drop continues. Once the current issue is fixed, ETH will certainly pull back up.

And I think I will buy a kitty :) not for investing purposes though or to breed or play the game at all. I think it is a fad that will die out similar to Pokémon Go.