Core reason: The escalation of the Iran nuclear crisis triggered market panic, leading to a sell-off of risk assets.

News-driven crash logic

  1. Sudden geopolitical black swan

    • 04:17-04:18, Iranian President's tough statements were released in quick succession, directly pointing to the US attack on nuclear facilities and vowing retaliation, causing the market to instantly interpret it as a potential escalation in US-Iran conflict.

    • Historical experience: Middle Eastern crises often trigger a chain reaction of surging oil/gold prices → plummeting risk assets, with ETH as a highly volatile asset being the first to suffer.

  2. Market sentiment transmission path

    • Risk aversion explodes: Funds rapidly withdraw from cryptocurrencies, especially high Beta assets like ETH, and turn to USD/Treasuries.

    • Leverage liquidation: The funding rate of ETH perpetual contracts was previously high and crowded with long positions, triggering a chain of liquidations that intensified the downward momentum.

Key technical signals

  1. Key support level lost

    • Before the plunge, ETH was in the 2150-2200 oscillation range, with 1H level support, but declining trading volume indicates weakness in bulls.

    • At 04:18, a long bearish candle directly broke through 2150, triggering algorithmic trading stop-loss orders and forming a classic technical breakdown where support turns into resistance.

  2. Liquidity gap amplifies volatility

    • 4 AM is a period of weak liquidity in the Asian market, large sell orders can easily trigger a flash crash.

    • CEX on-chain data shows a large number of stop-loss orders around 2111, forming a liquidity black hole.

Anna's summary

News-driven black swan + technical breakdown caused ETH to flash crash. In the short term, geopolitical risks remain, so caution is needed:

If the US-Iran conflict continues to escalate, ETH may test the psychological level of 2000;

We need to observe whether the support at 2150 can be regained after the oversold rebound (confirmation of resistance effectiveness).

Operational advice: Current market sentiment is sensitive, it is recommended to reduce leverage and pay attention to the situation in Iran and changes in risk appetite after the US stock market opens.

Opportunities to make money are always there, it just depends on whether you can seize this moment. However, the premise is learning to distinguish the principles of technical and news analysis as a basis for positioning. If you don't know how to distinguish, you can follow Anna's homepage, where she teaches step by step.