Gate News, amid heightened tensions involving Iran, the price of Ethereum has recently seen a clear pullback. U.S. President Trump rejected Iran’s proposal to end the war and warned that if Tehran does not reopen the Strait of Hormuz on schedule, the U.S. will carry out strikes on its key infrastructure.
This news sparked panic in the market: the Ethereum price fell by about 3.4%, breaking below the $2,100 support level. Investors are worried that geopolitical conflict will escalate, prompting them to pull back from both cryptocurrencies and traditional safe-haven assets such as gold and silver. Japan’s Nikkei 225, Hong Kong’s Hang Seng Index, and China’s Shanghai Composite Index also saw fluctuations or declines.
On the technical side, Ethereum has formed a double-top pattern on the 4-hour chart, with the neckline near $2,017. If the price breaks below the $2,000 support level, the double-top pattern would be confirmed, and the theoretical downside target could reach below $1,900. The Aroon indicator shows bearish dominance, and the MACD is approaching a death cross, indicating increasing selling pressure. Market participants are focusing on the risk of long positions held by retail traders; if the price further drops to $2,040, long positions valued at about $1.41 billion may be forced to close, triggering a cascading liquidation effect.
Trader Tom Harris said that with current geopolitical uncertainty increasing market volatility, Ethereum may continue to face pressure in the short term, but the long-term trend still depends on whether the conflict escalates or de-escalates. Analyst Linda Chen noted that if expectations of a reopened Strait of Hormuz are fulfilled, the price could bottom out and rebound; otherwise, downside risk will still remain.
Overall, Ethereum is facing a test of its support levels, and investors should closely monitor the combined impact of technical indicators and geopolitical news. Short-term market volatility may further intensify, but the long-term trend still needs to be watched in light of changes in the global energy and policy environment.
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