The price of Ethereum (ETH) faced pressure over the weekend due to geopolitical events involving US airstrikes on Iranian nuclear facilities. This event negatively impacted cryptocurrency markets and led to price declines.
Price Drop of Ethereum and Its Causes
Ethereum briefly fell below the $2,200 mark. Despite a subsequent price recovery, the asset lost nearly 15% of its value over the past week amid escalating tensions in the Middle East.
Weak Fundamentals of ETH
According to the latest update from Matrixport, Ethereum remains vulnerable to further losses due to risky futures positioning. This suggests that ETH may face new declines. Matrixport analyst Markus Theilen warned that the futures market shows signs of overcrowding, indicating that the unwinding process is not yet complete.
Strengthening Dominance of Ethereum in the Market
Despite weak gains, interest in Ethereum on the Binance platform is increasing, albeit in the context of declining interest in other altcoins. Analysis shows that Ethereum’s trading volume remains stable while that of altcoins has dropped significantly, indicating a shift in investor sentiment.
Amid growing uncertainty in the cryptocurrency market, Ethereum continues to face pressure from short-term risks but also shows signs of increasing its market presence.
