NFT Artist Loses $3M to Taxes and Crypto Crash
- Jonathan Mann, known for his “Song A Day” project, sold 3,700 songs as NFTs, earning $3 million in Ether (ETH).
- The market crash during the Terra ecosystem collapse led to a significant loss of value in his holdings.
- Mann faced a tax bill of $1.1 million from the IRS despite the decline in ETH value.
- To cover taxes, Mann sold a rare Autoglyph NFT for $1.1 million.
- Losses from an Aave loan liquidation meant no capital gains taxes on the Autoglyph sale.
Jonathan Mann’s experience highlights the volatility of the crypto market and tax implications of selling NFTs. Despite setbacks, he continues to create and sell music NFTs with hopes of future success.
ETH Consolidates Post-NFT Tax News – Key Levels to Watch
– ? NEUTRAL Signal (5/10) | Medium Risk Trade
– ? Entry: $2,480-$2,520 | Targets: $2,580, $2,640 | Stop: $2,420
– ? Days to decide
– ? Key: Neutral momentum; watch for breakout above EMA20 or breakdown below $2,457.
One NFT artist’s $1.1M tax bill, paid by selling a rare NFT after a $3M loss from the 2022 crypto crash, highlights market volatility and tax implications. This news coincided with ETH’s recovery from Thursday’s $2,391 low, now consolidating near the middle of its Bollinger Bands. The price hovers around the EMA20 at $2,521, a key immediate resistance.
Technical Analysis: ETH
NEUTRAL (Score: 5/10)
MEDIUM
Target 1: $2,580 (+3.2%)
Target 2: $2,640 (+5.6%)
Stop Loss: $2,420 (-3.8%)
Risk/Reward: 1:1.5 | Timeframe: 3-5 days
ETH is consolidating near the middle of its Bollinger Bands after recovering from Thursday’s sharp decline to $2,391. The RSI at 48.44 (4h) indicates neutral momentum, while the daily RSI at 53.45 suggests slight bullish bias. MACD shows bearish divergence with histogram at -36.18, indicating weakening momentum. The NFT tax story highlights ongoing market pressures but doesn’t fundamentally alter ETH’s technical outlook. Price is testing the EMA20 at $2,521 as immediate resistance.
- Immediate Support: $2,457 (recent low)
- Immediate Resistance: $2,521 (EMA20)
- Major Resistance: $2,640 (Bollinger upper band)
- MACD bearish divergence suggests weakening upward momentum
- Price below both EMA20 and EMA50, indicating short-term bearish structure
- Negative OBV (-1.6M) shows persistent selling pressure
- Weekend low volume may lead to increased volatility on Monday
Trading Action
Consider a neutral strategy; enter long between $2,480-$2,520 with a stop loss at $2,420. Target $2,580 and $2,640. A break above EMA20 ($2,521) strengthens the bullish case; a breakdown below $2,457 invalidates the trade. Manage risk by sizing positions appropriately, given potential weekend volatility.
Bottom Line
Scalpers can play the range between $2,457 and $2,521. Swing traders should wait for a confirmed breakout above $2,521 or breakdown below $2,457 before entering. Watch $2,521 as the key level.
Not financial advice. DYOR.
