- Ether dropped nearly 15% in under 48 hours, reaching about $2,450 after nearing $2,875 the previous day.
- Rising tensions between Iran and Israel triggered widespread profit-taking in both crypto and stock markets.
- Analysts report that the pullback is linked to increased uncertainty, not fundamental changes in Ethereum.
- Long positions in Ether increased before the selloff, as traders took profits amid global market turmoil.
- Experts note that medium-term optimism for Ethereum remains strong despite the price dip.
Ether prices fell sharply in the past few days, losing almost 15% of value in less than two days. The decline saw the cryptocurrency drop to roughly $2,450 late last night, after rising close to $2,875 the day before. Global tensions, especially recent developments between Iran and Israel, led investors to sell off riskier assets, including major cryptocurrencies and stocks.
According to Coinbase data from TradingView, the drop matched similar losses in the stock market, where the S&P 500 and Dow Jones Industrial Average also fell around 1% for the day. Tom Bruni, editor-in-chief and VP of community at Stocktwits, pointed out that the recent decline is not due to any fundamental changes in Ethereum. Bruni stated, “Nothing has fundamentally changed with Ethereum over the last few days, so we must rely on technicals and trader behavior to explain this pullback.”
Bruni added, “New risks emerging from the Middle East have created more uncertainty in the market, making market participants less willing to hold risk assets in their portfolios over the weekend and into next week.” He noted that after ten weeks of gains in risk assets, such as stocks and cryptocurrencies, both traders and investors are looking to secure profits. Bruni also observed that because Ethereum is considered riskier than Bitcoin, it experienced a sharper fall—similar to how small-company stocks may drop more than larger ones in a downturn.
Patrick Liou, associate director of institutional sales at Gemini, confirmed that Ether’s selloff corresponded with reports of an Israeli military operation in Iran, which has increased geopolitical uncertainty. Liou said, “ETH is seeing a pullback in prices as a result of Israel conducting a wide scale military operation on Iran with 14 days of planned operations, according to senior Israeli military officials.” Liou highlighted that the move reversed a period where Ether had been gaining against other major cryptocurrencies, as global events shifted market sentiment.
Julio Moreno, head of research at CryptoQuant, provided further evidence of profit-taking. He explained that most of the recent price drop came after traders sold their Ether following an earlier price spike near $2,800. Moreno commented that long positions were opened during the prior rally, and uncertainty from Middle East tensions drove the surge in profit-taking.
Despite the recent slide, many analysts see no significant change in Ethereum’s underlying trend. Bruni stated that traders should monitor whether Ether stays above its May lows around $2,300 to maintain the positive outlook. He also noted ongoing strong optimism among retail investors, based on message volume and sentiment observed on Stocktwits.
Further details reveal that traders reacted quickly to market volatility, adjusting their portfolios in response to ongoing headlines and global uncertainty. The larger trend for Ether remains robust, provided it holds key support levels identified by market observers.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- GameStop Raises $2.25B in Notes, Buys Bitcoin as Shares Drop 24%
- Bitcoin.ℏ Emerges as Green, Energy-Efficient Rival to Bitcoin
- Peter Todd Plans Punishment for Bitcoin Node “Garbageman” Attackers
- Bitcoin Stays Strong Amid Hormuz Threat, Faces Risk if Strait Closes
- Algorithmic DAO and Stablecoin Launch Reshape DeFi on Radix