Middle East Conflict Triggers Risk-Off Sentiment
Ether (ETH) tumbled sharply as rising geopolitical tensions sent investors fleeing from crypto and risk assets. On Friday, ETH plunged 7.05%, falling from an intraday high of $2,770.56 to a low of $2,477.71, before stabilizing around $2,536.
The move marked ETH’s lowest level in over 10 days and came amid a broader flight to safety after Israeli airstrikes on Iranian military sites.
Investors Turn to the Dollar and Gold
Following the strikes, the global markets entered risk-off mode, driving capital into traditional safe havens:
- The U.S. dollar rose 0.6%, recovering from a multi-year low.
- Gold surged near a two-month high, reinforcing its role as a hedge during geopolitical shocks.
- Oil futures spiked up to 13%, though gains were later pared back.
ETH’s drop mirrored sell-offs in equities, bonds, and other high-risk assets, as traders reduced exposure to volatility.
ETH Price Action and Volume Surge
According to technical analysis, the sell-off was intensified during U.S. evening trading, with trading volume spiking to 692,000 ETH:
- ETH plunged over 10.6% intraday, with the bulk of losses concentrated in hours after the Israel-Iran headlines.
- A temporary bounce from the $2,480 level helped ETH recover slightly, though resistance remains near $2,550.
- The latest candlestick formations suggest a tight consolidation band between $2,530–$2,540.
Gradually decreasing volume now signals short-term exhaustion, but no confirmed bullish reversal is present.
What’s Next for Ether?
Market analysts warn that volatility will likely stay elevated as traders assess the depth and duration of the Middle East conflict. The situation has significant implications for oil prices, inflation expectations, and central bank policy, all of which could impact crypto markets.
If ETH breaks below the $2,480 support zone, technical traders may expect further declines towards $2,400.
Final Thoughts
The recent drop in Ether highlights how macro events and global risks can still drive large moves in digital assets. While short-term sentiment is cautious, long-term fundamentals remain intact. Traders and investors are advised to watch key support levels and global headlines closely as the market digests the impact of escalating tensions in the Middle East.