The price of Ethereum retreated from some of its gains on Monday after US President Donald Trump ignored an Iranian proposal to end the war and warned that strikes would target key infrastructure if Tehran failed to reopen the Strait of Hormuz by the deadline.
summary
- The price of Ethereum fell 3.4% to below $2,100, as Trump rejected Iran’s proposal and warned of strikes if the Strait of Hormuz is not reopened.
- Risk sentiment has weakened across cryptocurrencies and stocks, with Asian markets holding lower and investors withdrawing capital amid geopolitical uncertainty.
- A confirmed break below $2,000 could trigger a double top pattern and the liquidation of up to $1.41 billion in long positions.
According to data from crypto.news, Ethereum (Ethereum) The price fell 3.4% below the $2,100 support level after that Reports It emerged that Trump would not cancel strikes on Iranian infrastructure unless Tehran committed to reopening the Strait of Hormuz, a major sea lane that handles 20% of total global oil trade. This came after the US President rejected a proposal from the Iranian leadership to end the war while keeping the strait closed.
Fears of a very strong blow to Iran are likely to cause investors to withdraw their capital as they wait for this geopolitical standoff to end. Investors are pulling out of cryptocurrencies and traditionally safe-haven assets such as gold and silver, a sign of broader de-risking across global markets as uncertainty grows.
Asian technology stocks such as Japan’s Nikkei 225 Index, Hong Kong’s Hang Seng Index, and the Shanghai Composite Index remained either flat or falling as increasing uncertainty weighed on the region.
Besides these factors reducing risk appetite, retail investors are also likely to panic as they are likely to face the liquidation of $1.41 billion worth of long positions that will be wiped out from the market if the Ethereum price drops to $2,040.
On the daily chart, Ethereum price is forming a double top pattern on the 4-hour chart. Double top patterns are one of the most common bearish signals in technical analysis. The neckline for the pattern is at around $2,017.
If Ethereum price drops below the $2,000 support level, it will confirm the double top pattern and will continue to fall below $1,900 as calculated by subtracting the height of the double tops formed from the point where the neckline stands.
Technical indicators show that the bears are starting to take control. It is worth noting that the Aroon’s up and down lines have pointed sharply downward, indicating a strong downtrend. The MACD lines are close to forming a bearish cross, which is a signal of mounting selling pressure.
Currently, the immediate trend-setting support level is at $2,000. Failure to maintain this level would confirm both the double top pattern and the long liquidation series.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
