New NYC token, backed by former mayor Eric Adams, plummets as “rugpull” allegations swirl

After rallying from $1,830 to above $2,100 on Wednesday, ethereum struggled to hold on to its gains and dipped under $2,000, a round psychological price level, on Thursday. 

The seesaw price action helped liquidate $146 million worth of leveraged long and short positions on ethereum in the last 24 hours, data from CoinGlass shows.  

While ethereum was due for a relief rally after entering into oversold conditions as measured by its relative strength index, some are still maintaining a bearish sentiment, according to Delphi Digital analyst Simon Shockey.

With ethereum now trading under $2,000, Shockey called the rally “unconvincing.” He told Sherwood News that he doesn’t “think most crypto natives are compelled to really believe the lows are in,” adding that he could see ethereum fall further from here and make new lows in the second half of the year. 

The price action comes as cofounder Vitalik Buterin has sold $35 million worth of ethereum tokens since the start of February and the paper loss for the largest ethereum treasury firm, BitMine Immersion Technologies, has climbed to nearly $7.9 billion. 

On the positive side, ethereum developers introduced a new road map that involves seven hard fork upgrades by 2029 and several north stars, one of which aims to make ethereum a “post quantum” layer 1 network.

Crypto assets and crypto-adjacent companies are catching a bid and rebounding off recent lows, with stablecoin issuer Circle soaring after reporting strong earnings before the bell. The company beat on revenue and reported that USDC in circulation has grown to $75.3 billion, up 72% year over year.

The total market capitalization of all cryptocurrencies has increased 4.5% in the last 24 hours, and both tokens and companies close to crypto are enjoying a boost:

• Altcoins ethereum, XRP, solana, dogecoin, hype, chainlink, and avalanche are all in the green.

• Bitcoin treasury firms Strategy and Strive Inc. are rising along with bitcoin.

• Bitcoin miner Hut 8, which reported Q4 earnings that beat on earnings per share while missing on revenue, is up in early trading, as are miners MARA Holdings and Riot Platforms.

• Ethereum treasury firms BitMine Immersion Technologies, SharpLink Gaming, and Bit Digital are up.

• Solana treasury firms Upexi and DeFi Development Corp. are also both rising.

• Crypto trading platform Coinbase and Robinhood are both enjoying a boost from the rise in crypto sentiment.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Despite the relief bounce, some are still uneasy. “The whole market still seems very heavy to me,” Glenn Rosenberg, managing partner at Persistent Trading, told Sherwood News. “Jokingly, BTC feels like it’s now 100% correlated to any asset or news that’s negative! I think we test 60,000 — that’s a big long-term channel and could push lower from there,” he said. “The whole [space] looks risky right now.”