⚠️ Ethereum Forms Weekly Tower Top — U.S.-Iran Conflict Fuels Bearish Fears
Ethereum fell below the $2,320 support level and breached its long-term range since early May. This breach was caused by rising geopolitical tensions when the US attacked Iranian nuclear installations. Risk-off behavior and crypto panic selling followed the news, shaking global markets.
Ethereum currently trades outside the zone that has drawn bulls and bears for over a month, signaling a major change in attitude.
The asset has fallen below its six-week range, worrying investors and increasing crypto market uncertainty. With escalating Middle East tensions, especially after US assaults on Iranian nuclear facilities, the market has gone risk-off, driving cryptocurrencies like Ethereum down.
Investors predict Ethereum to dominate the upcoming altseason despite its volatility. Bulls are losing critical support zones, thus confidence in a near-term rally is low. Some analysts expect a further drop toward $2,000, while others believe Ethereum is approaching exhaustion on the downside and may rebound.
According to the 4-hour chart, Ethereum has broken below $2,320, indicating a short-term market move. After weeks of trading between $2,320 and $2,650, ETH lost bullish momentum. The price has fallen drastically from June's $2,900 highs to $2,260. This current drop followed a clean break of the 50, 100, and 200-period SMAs, confirming bearish momentum.
Volume increases matched the decrease, indicating Middle East geopolitical upheaval spurred panic selling. The price fell rapidly without resistance, weakening earlier demand zones. Ethereum may retest May support levels around $2,100 or $2,000 if buyers don't act promptly.
Technically, the breakdown invalidates the consolidation range, allowing a protracted correction. ETH may continue to fall until it regains $2,320 and stabilizes above its moving averages. Market investors should monitor for volume swings or positive divergences, while Ethereum is under pressure due to macroeconomic uncertainties.
