- Mt. Gox has begun repaying creditors who lost money during its 2014 collapse.
- Ethereum fell to an intraday low of $2,825 and is on track to record its fourth consecutive red candle at the time of writing.
Bitcoin, the world's largest cryptocurrency, crashed to its lowest level since February early today as the market reacted to news of activity surrounding a Mt. Gox-linked wallet. The crash was so big, in fact, that BTC fell below $55,000 on the price charts and fell by over 9% on the weekly chart.
However, Ethereum led the way over BTC, with Ethereum also recording bigger losses, with ETH falling below $3,000 and hitting an intraday low of $2,820.
Whale activity also contributed to the losses
Ethereum's sudden fall Worse This is because whales have been selling large amounts of Ethereum (ETH) to pay off debts on sunken investments.
Indeed, on-chain data resource LookOnChain found that the ETH price drop posed liquidation risks to Ethereum whales who were long ETH via Aave and Compound. For example, the tool tracked an address that sold 26,600 ETH to pay off debt on Aave. post About X.
Liquidation
As expected, Friday's market crash led to the liquidation of roughly $650 million worth of cryptocurrency in just 24 hours, including $537 million in bullish bets.
Source: Coinglass
Within 24 hours of going to press, $130 million worth of long ETH positions were forcefully closed.
Source: Coinglass
Meanwhile, ETH futures open interest (OI) across major exchanges also fell by around 12% during the aforementioned period, a sign that funds are withdrawing from the market.
Source: Coinglass
Finally, Ethereum’s CME OI also fell by 7.59%, confirming bearish investor sentiment across the board.
ETH/USDT Technical Analysis
The ETH/USDT decline has extended into its fourth day, weighing on the pair. This caused the pair to break through key support levels at the peak of the decline. ETH price fell below the 50, 100 and 200 simple moving averages on the daily chart.
Source: TradingView
The last time ETH/USDT fell below all three daily trendlines was in August 2023. At the time, the cryptocurrency market suffered losses following reports that Elon Musk’s SpaceX had sold its Bitcoin holdings.
ETH was last seen at $2,920, 40% below its all-time high, according to CoinMarketCap. Ethereum’s weak performance this week reinforces the bearish outlook in the near term as well.
Source: TradingView
The ETH/USDT pair is currently positioned to face resistance near the $3,200 level, a level it was fighting over from mid-April to mid-June.
