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What does Mt. Gox has to do with the Ethereum (ETH) drop below $30,000 which coincided with the coin registering the highest open-interest this year. A rising open interest normally indicates support for the current price trend which is now bearish.
The position didn’t go unnoticed as @TedPillows on X (formerly Twitter) noticed that Ethereum had dropped harder than Bitcoin as it failed to hold crucial support. The recent market decline can be attributed to the repayment of bitcoin and bitcoin cash to Mt. Gox creditors, valued at $9 billion.
Ethereum (ETH) drop to $28,000: Why the level remains crucial?
Per CryptoQuant data, correction below $28,000 support is set to put 2024 buyers underwater.
Cryptocurrency analyst who goes by @TedPillows on X (formerly Twitter) noticed that Ethereum’s drop was substantially greater than Bitcoin, despite Mt.Gox and the government selling Bitcoin. And now, with an Ethereum ETF fast approaching, ETH could lead the market recovery. As such, holding ETH becomes unprofitable for the new cohort of purchasers.
2024 Ethereum (ETH) buyers in danger below this price level
The Ethereum (ETH) community should be watching closely the level of $28,000 per coin. This milestone is the average price the grey coin was purchased at last year.
Mysteriously, this mark coincides with Ethereum’s rally in March this year when the U.S. Department of Justice ruled a case accusing two individuals of wire fraud and money laundering through the manipulation of the Ethereum blockchain.
It also coincides with the mid-January 2024 Bitcoin (BTC) rally triggered by the highly anticipated spot Bitcoin ETF approval in the United States.
In another post, the analyst emphasized that the Mt. GOx sale is just noise, and $224 billion had flowerf into the market since 2023. The market was simply correcting and was only carrying FUD to try and support the narrative. However notable was the rising purchase of cryptocurrencies by public institutions.
At the sametime he emphasized that ETH was oversold at current levels and $28,000 was simply the bottom
Ethereum (ETH) at $31,000: Ethereum signals a drop further
Meanwhile, Ethereum has corrected from oversold territory on the daily time frame, however the relative strength index (RSI) line is dropping lower. The William Alligator trendlines are also dropping lower while feeding, such a formation signals high market volatility.
The current indicators point to a further drop lower, supported by the MACD indicators which signal rising price momentum.
Traders are now concerned that the year’s cryptocurrency bull run might be over, especially as this downturn coincided with the S&P 500 index reaching a new high. The stock market responded positively to the U.S. announcement of a rising unemployment rate for June to 4.1%. A weaker economy encourages interest rate cuts by the central bank, reducing the appeal of fixed-income investments.
