Geopolitics Drives Ethereum 9% Drop; $2,000 Support Threatened
Ethereum plunged amid escalating Middle East tensions and US strikes on Iran’s nuclear sites, breaking its month-long $2,350–$2,900 range. On June 21, ETH fell 4.6% to $2,215—the lowest in 50 days—and has now declined over 9% in 72 hours. More than $679 million in crypto positions were liquidated, including $250 million in ETH long liquidations, as whales dumped 5,000 ETH near $2,400 and on-chain “Coin Years Destroyed” hit a six-month high. A long liquidity cluster around $2,239 signals intensified bearish bets. Traders are eyeing the critical $2,000 support—12% below current levels—and await traditional markets reopening for further cues from oil prices and geopolitics.
Bearish
The combined developments—rapid ETH declines, heavy long liquidations and whale selling—underscore heightened bearish momentum. In the short term, traders face amplified volatility as geopolitical tensions and liquidity clusters near $2,239 increase the risk of a $2,000 retest. Long-term recovery will hinge on easing macro pressures and oil market stability, but current on-chain metrics and support breaches point to continued downward pressure.