Another day of huge Ethereum liquidations as Mt. Gox negative pressure continues
Ethereum liquidates over $108 million as Mt. Gox repays creditors.
Grayscale Ethereum Trust traded above net asset value as spot ETH ETF debut nears.
Ethereum may consolidate as important support becomes essential in coming days.
After the Mt. Gox BTC reimbursement, Ethereum (ETH) fell over 5% on Friday, causing over $108 million in liquidations. The repayment's supply fueled Bitcoin's negative trend, which spread to ETH.
Daily digest: Mt. Gox headwind, ETHE discount
Mt. Gox started repaying creditors today after sending $84.87 million in BTC to Bitbank's hot wallets. The move exacerbated crypto market bearishness as altcoins, headed by Ethereum, fell.
Due to the spot ETH ETF debut, many anticipated ETH to be less impacted by market sentiment, but the SEC's delayed approach to greenlight issuers' S-1 drafts certainly provided bearish momentum.
On May 23, the SEC accepted spot ETH ETF issuers' 19b-4 forms, but their S-1s must be approved before trading. VanEck, BlackRock, Bitwise, Grayscale, 21Shares, Fidelity, Franklin Templeton, and Invesco may issue.
On July 3, YCharts data showed the Grayscale Ethereum Trust (ETHE) trading at 0.31% over net asset value (NAV).
However, investors purchased discounted shares aggressively when the SEC approved potential issuers' 19b-4 filings, closing the gap and raising the price. The $9.5 billion ETHE trust will become an ETF when spot ETH ETFs launch.
Ethereum technical analysis: Consolidation possible
Friday's Ethereum price is $2,984, down roughly 5% in 24 hours. The subsequent slide from Thursday's lows caused massive ETH liquidations, wiping out $134 million in open positions. Long liquidations reached $108.4 million, while shorts were under $26 million.
Given these circumstances, ETH may not continue below $2,852 as the weekend approaches. ETH will likely start a horizontal trend around $2,852 to $3,367, where it traded for roughly five weeks (April 12–May 19).
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