As Bitcoin and Ethereum continue their downward slide after failing to hold on to their yearly highs earlier this month, a Montenegro court has accepted a €400,000 bail for Do Kwon and another €400,000 for Hon Chang Joon. Do Kwon faces charges of fraud related to the collapse of Terraform Labs and document forgery.
The defendants confirmed their financial status in court, stating they have assets worth millions of euros and that their wives would pay the bail amount. They also pledged not to flee while awaiting trial, to regularly respond to court summons, and to be available at their registered addresses.
The prosecution objected, arguing that the proposed bail sum does not guarantee the defendants would honor the deal and that they had no interest in remaining in Montenegro. However, the court considered the gravity of the alleged crime, the defendants' personal and family circumstances, and their financial situation, ruling that the potential loss of the €400,000 bail would significantly impact the defendants.
The defendants will be placed under house arrest. Should they escape or violate the supervision measures, the bail will be transferred to a special account without being returned to the guarantors.
The collapse of Terra's ecosystem had devastating consequences for the digital assets market, which saw a massive sell-off following news of LUNA and UST's failure. This triggered the so-called "crypto winter" and inflicted significant damage on many market participants. The collapse impacted the solvency of major industry players, such as the Celsius platform, which had significant UST holdings. Three Arrows Capital was also hit, as it had invested around €200 million in LUNA. The failure of TerraUSD led to a wave of bankruptcies.
On the technical side, Bitcoin's upside potential depends on its ability to regain the key level of $27,000. However, it is unlikely to do so today. Holding onto this level would pave the way for a bull market with $29,000 being the target. The most distant target is $31,000, where substantial profit-taking could send Bitcoin downwards. If sell-side pressure resumes, the focus will shift to holding the support at $25,500. A breakout below this level would send BTC down towards $23,900. If Bitcoin breaks through this level as well, it may slide down to $22,580.
Ethereum bulls, on the other hand, are focused on maintaining control over the closest support level of $1,690 while aiming to regain control of the lost resistance level of $1,800, a level that has proven challenging to overcome. A successful push above this resistance level would likely propel the cryptocurrency to $1,925, fueling the bullish trend and driving Ethereum towards the $2,028 area. A breakout above this area may extend gains to $2,127. However, if downward pressure on Ethereum continues, it could test $1,690. A breakout below this point will open the way towards $1,640. From that area, the digital asset could tumble to lows around $1,570.