Ethereum is down by 11% over the last two days, with much of the impact caused by the escalating geopolitical tension between Israel and Iran.
The major support area is at $2,350 -2,450, an important level that could dictate the near-term trend of Ethereum.
The market mood is still cautious and the technical indicators are pointing to more volatility and uncertainty in the short run.
Ethereum (ETH), also fell significantly, losing 11% in the last two days. This latest slump has been primarily blamed on the growing geopolitical tension between Israel and Iran which sparked a sense of uncertainty in all global financial markets, including crypto.
This sudden decline has pushed the price of Ethereum near a strong support level, with investors and analysts concerned about potential deeper declines should the support fail.
Price Action and Market Behavior
Ethereum is currently trading at about $2,551.98, 5.88% down on the intraday basis. This comes after a general downward fall over two consecutive days with combined losses amounting to over 11%. Volatility in the 24-hour period of trade is observed with ETH fluctuating between $2,468 and $2,769. The price also fell briefly below the $2,600 mark before surging above it.
Technical indicators highlight a critical support area between $2,350 and $2,450. This range is considered the next potential cushion for price stabilization. If Ethereum maintains this support, market participants believe the asset could consolidate before making another attempt to climb back above resistance levels near $2,770.
Ethereum Retests Key Support Amid Geopolitical Pressure
Chart analysis shows that Ethereum previously broke out of a descending trendline and entered a consolidation phase between $2,600 and $2,800. However, the recent geopolitical shock reversed the upward trend, pushing the price back toward its support belt. Analysts have noted that this zone has historically held firm during past corrections, adding weight to its current significance.
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A major support zone also exists further below around $1,385, although market watchers agree that such a deep retracement would require significant downward pressure beyond the current macroeconomic triggers.
Geopolitical Tensions Pause Ethereum Rally
The tension between Iran and Israel has led to a subdued mood among investors. Traditional financial markets have reflected in their response to the uncertainty, with the crypto market being somewhat sensitive to global developments. This has led to a pullback not only in Ethereum but across other leading digital assets.
While there are investors who remain cautious, others argue that short-term jitters to responses to geopolitical events are inevitable and long-term fundamentals remain intact. But the near-term impact is simple: Ethereum's rally has slowed, and now the focus is on whether the current support level can resist prolonged selling pressure.
Ethereum Tests Key Support Amid Uncertainty
Moving forward, the critical observation lies in Ethereum’s ability to defend the $2,350–$2,450 support range. If this level holds, a stabilization and potential bounce back could be in view. If broken, the next levels of interest could be significantly lower, introducing broader bearish sentiment in the near term.Traders and analysts are expected to monitor both technical levels and geopolitical headlines closely, as either could determine Ethereum’s next major move.
