Crypto Market Drops 2% Amid Geopolitical Tensions and Liquidations

The crypto market is experiencing a significant downturn, with major coins such as Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) facing sharp declines. Solana (SOL) and AI-based tokens have also recorded large drops. The total crypto market cap has fallen to $3.15 trillion, marking a close to 2% decrease over the past 24 hours. This decline is attributed to fresh geopolitical tensions, as the US launched airstrikes against Iranian nuclear facilities, escalating the Iran-Israel conflict. This news triggered an immediate market reaction, with altcoins declining by up to 10%.

In addition to geopolitical tensions, the market is also grappling with liquidations. Over $677 million in leveraged positions were liquidated, wiping out over 171,000 traders in a single day. The largest loss came from a $9.15 million ETH long on HTX. This liquidation event has added to the market's uncertainty and volatility.

Bitcoin's price is currently trading just above $102,000, after failing to break higher over the weekend. The price action is compressing between $101,500 and $104,000, forming what many analysts consider a potential “liquidity sweep” setup. According to a tweet from Altcoin Sherpa, it’s “hard to imagine BTC not running those lows past the wick,” suggesting price could dip below $101,000 to trigger stop losses before rebounding. This setup aligns with current market structure, with short-term support close to $101,000, and the next key resistance at $106,000. Market participants are waiting to see whether the price breaks below $101K or returns above $104K.

Ethereum is under heavy pressure, down over 6% today and trading around $2,263. The price began falling after losing support at $2,450. Sellers quickly pushed the price through multiple levels, with little resistance along the way. The next support to monitor is between $2,200 and $2,250. If that breaks, a move toward $2,000 is likely. Resistance has now formed around $2,420–$2,450. Unless ETH reclaims those levels, bearish momentum is expected to continue.

While Bitcoin's price trades just above $102,000, many altcoins are facing deeper losses. AI-focused tokens and high-beta projects have dropped more than 10% in some cases, reflecting a flight to safety. With ETH price nearing a very important support level and BTC failing to gain direction, the market is tight. Sentiment has slightly gone bearish, and any breakdown below important levels would add to further losses. Market participants are waiting for a decisive move from Bitcoin. Whether BTC holds $101K or breaks below could set the tone for the rest of the market this week.