On June 13th, Ethereum (ETH) recorded a 7% price drop, coinciding with a surge in trading volume. Investors began selling ETH amid concerns over geopolitical tensions in the region.
Drop and Increase in Trading Volume
On June 13th, some traders chose to sell their ETH assets due to rising tensions between Israel and Iran. Ethereum's trading volume surged by 40%, surpassing $40 billion within 24 hours. This is directly linked to increased selling activity.
Technical Signals and Recovery Potential
Despite the high trading volume, technical signals suggest a potential recovery in Ethereum's prices. According to technical analyses, a positive formation appears to be emerging in the ETH/BTC pair. Experts anticipate a potential 35% recovery in Ethereum prices. In particular, a technical indicator known as the 'bullish cross' strengthens this recovery possibility.
Impact of Geopolitical Risks on Market
A substantial number of ETH investors opted for selling their assets due to regional geopolitical risks. However, technical analysts argue that external factors may not suffice to explain Ethereum's price movements. 'The positive outlook in the ETH/BTC pair indicates Ethereum's recovery potential in the near term,' is stated in CoinGape's analysis.
Despite the recent price decline in the Ethereum market, the recovery potential indicated by technical indicators is gaining attention among investors. The increasing trading volume underscores market activity, and monitoring technical analyses along with global developments can aid investors in making informed decisions.
