$ETH Ethereum Forms Weekly Tower Top — U.S.-Iran Conflict Sparks Bearish Panic
Ethereum has broken below the critical $2,320 support, exiting its long-standing consolidation range that held firm since early May. This sharp downturn coincides with rising geopolitical tensions following U.S. military strikes on Iranian nuclear facilities. The news triggered risk-off sentiment across global markets, intensifying panic selling in crypto — and Ethereum wasn't spared. Now trading beneath a zone that once attracted both bulls and bears, ETH's shift signals a deeper market sentiment change.
The breach of its six-week range has raised alarm among investors, especially as fear escalates amid the broader Middle East conflict. With confidence waning, analysts are split — some expect a further slide toward $2,000, while others argue Ethereum could soon find a bottom as bearish momentum exhausts. Since falling from June’s $2,900 peak to around $2,260, Ethereum has decisively broken below its 50, 100, and 200-period SMAs on the 4-hour chart — a clear sign of ongoing downward momentum.
Volume surged during this decline, amplifying the fear-driven sell-off, and former demand zones have now weakened. If buyers fail to step in, ETH could revisit its May lows between $2,100 and $2,000. From a technical standpoint, this breakdown has invalidated Ethereum’s consolidation structure, opening the door for an extended correction unless the price can reclaim $2,320 and re-establish support above its moving averages. For now, the market remains cautious, closely watching for any signs of bullish divergence or volume spikes that could hint at a turnaround — but until then, Ethereum remains under pressure from both macroeconomic fears and geopolitical shockwaves.