Cryptocurrencies, including Ethereum, experienced a sharp decline due to escalating geopolitical risks stemming from the Israel-Iran conflict. With investors fleeing risk assets, ETH lost 11% of its value over two days.
Reasons for ETH's Sharp Decline
Amid the escalating Israel-Iran conflict—marked by Israeli airstrikes and threats of retaliation—investors fled risk assets, causing ETH to plunge approximately 11% over the past two days. Cryptocurrencies dropped in tandem with equities and oil spiked, as traders sought safety.
Technical Analysis: Support Ahead
Analysts are closely watching the **$2,350–$2,450** ‘support belt’—a key technical level where ETH has historically found buying interest. A defense of this range could signal stabilization; a breakdown, however, might trigger further losses.
What to Do Next?
As long as ETH remains above $2,350, the drop could just be a short-term correction. Traders may see value in this region—if favorable macro conditions return. It is advisable to avoid panic selling, as historically during geopolitical drawdowns, markets often rebound after initial risk-off phases.
The uncertainty in the market, caused by geopolitical events, continues to influence cryptocurrency prices. Ethereum's resilience at the key range may determine its future direction.
