The escalating conflict between Israel and Iran, marked by Israel's airstrikes on June 13, 2025, has significantly impacted the Ethereum (ETH) market. Similar to Bitcoin, ETH experienced a sharp decline, plummeting nearly 7% and at one point dropping below $2,500. This reaction underscores Ethereum's current classification as a risk-on asset, rather than a safe haven, in times of geopolitical turmoil.
The broader crypto market saw over $1 billion in liquidations, with leveraged long positions being hit hard as investors sought safety in traditional assets like gold and the US dollar. While Ethereum's long-term fundamentals remain strong, the immediate market movement reflects the prevailing risk-off sentiment. Analysts are monitoring key support levels, with sustained downward pressure possible if tensions persist. The ETH market, like the rest of crypto, will likely remain volatile until the geopolitical situation stabilizes.
