The cryptocurrency market is experiencing a significant downturn as geopolitical tensions between Israel and Iran intensify — now further escalated by the involvement of the United States. Ethereum (ETH), a major player in the crypto space, has not been spared from the impact. After peaking at a monthly high of $2,877, ETH has now slipped to around $2,250.
Over the past seven days, ETH has dropped by 10%, and its monthly decline now sits at 16%. But behind the red candles lies an interesting technical structure — one that could hint at further downside before any recovery begins.
Source: Coinmarketcap
Power of 3 in Play?
Zooming in on Ethereum’s daily chart, we can see the development of what looks like the classic “Power of 3” structure — a smart money concept that plays out in three stages: Accumulation, Manipulation, and Distribution.
Accumulation Phase
From May 10 to June 9, ETH moved in a sideways range between $2,400 and $2,701. This phase, marked in the blue zone on the chart, reflects a textbook accumulation phase — where price consolidates and market makers quietly build positions without attracting attention.
Manipulation Phase
On June 10, ETH made a sharp breakout above the upper boundary of this range, surging to $2,879. This move likely acted as a "manipulation" or “liquidity grab” — sweeping stop losses and luring in breakout traders before reversing.
Ethereum (ETH) Daily Chart/Coinsprobe (Source: Tradingview)
Distribution Phase
What followed next was a swift breakdown below the range. ETH breached the $2,701 and $2,400 support levels, triggering the distribution phase — where the smart money starts offloading into the buying pressure created by breakout traders. The current price action shows ETH plunging toward the next major target.
What’s Next for ETH?
If the “Power of 3” pattern continues to unfold as expected, Ethereum could be on its way to retest the next key downside target at $1,921, a potential landing zone based on prior support zones and the measured move from the range breakdown.
However, traders should also pay attention to the 100-day moving average (MA) around $2,131, which could act as temporary support or trigger a bounce.
With the broader market still under heavy geopolitical pressure and sentiment fragile, upcoming daily candles could be highly volatile. Confirmation of a bounce or further downside will likely come through volume and how ETH behaves around the $2,131–$1,921 zone.
