ETH price dropped to a multi-month low but ETH derivatives data suggests that traders believe the correction is over.
Ether (ETH) price plummeted below $3,000 for the first time in 50 days on July 5. This drop was part of a broader cryptocurrency market correction, largely influenced by Bitcoin (BTC). Traders now fear that the crypto bull run has ended, and despite the upcoming launch of a spot Ethereum exchange-traded fund (ETF) in the United States, some worry that Ether price could continue to fall.
On July 5, the total market capitalization of cryptocurrencies fell below $2 trillion, a threshold not seen since Feb. 26. Ether’s 18% drop from $3,450 to $2,815 simply mirrored the sector's 16% decline over three days, with no specific cause other than the generally worsening sentiment toward cryptocurrencies. Analysts suggest that this downturn was prompted by increased selling pressure on Bitcoin.
On July 7, the Mt. Gox bankruptcy estate transferred 47,229 Bitcoin—valued at $2.6 billion—to a new address. This move is part of the process to start repaying creditors, as some of the Bitcoin were sent to a hot wallet of the Bitbank exchange. This has raised concerns about a negative impact on BTC price, since these coins, locked up for over a decade, could exert up to $4.5 billion in selling pressure.
