Ethereum (ETH) Price Struggles to Reclaim Crucial Support Zone as Bitcoin (BTC) Price Crashes Below $53500; What\'s Next?

The crypto markets are experiencing huge turmoil as the Bitcoin price crashed below $53,500 in the early trading hours.

The crypto markets are in a state of turmoil as the Bitcoin price crashed below $53,500 in the early trading hours on Friday. This development comes amid huge transfers from the Mt. Gox cold wallet and the address held by the German government, which has created a ‘panic situation’ among the traders.

Both wallets are known to be holding either 40,000 or $47,000 BTC, and hence, a large selling pressure is expected to kick into the space soon. In the meantime, Ethereum continues to hold above the crucial support zone, which is believed to be the last point of defense before the major crash begins.

The future markets, which shed light on the market trend, suggest that the ETH price remains within a bullish range. Open interest (OI) is a tool that monitors the total number of open positions in a contract. The latest pullback caused the price to slash close to $2800, but the ETH OI suggests a major flush is yet to happen. Therefore, the bearish clouds may intensify in the coming days, causing mass destruction.

The ETH OI continues to consolidate irrespective of the current market dynamics. However, the bearish clouds do not seem to fade, which may further cause the price to break below $2700. This move is expected to drag the OI below 2 million tokens, which may trigger a mass liquidation as outstanding derivative contracts could be closed.

Currently, all of the open interest from the Ethereum ETF approval has exited the market, which is valued at $3.5 billion in positioning. Hence, the levels are bound to drop if the price fails to hold the crucial support at $2800.

At the moment, the Ethereum price is struggling hard to reclaim the crucial support zone between $2868 and $2902. A daily close within or above the range might save Ethereum from being on ‘thin ice’ and initiate a decent recovery. However, if the FUD game continues to persist within the markets, the BTC price is expected to head to the crucial support at $52,000, diving the Ethereum (ETH) price below $2700 during the weekend.

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