Ethereum Drops 1.95% to $2,499.09 Amid Geopolitical Uncertainty

Ethereum (ETH) experienced a notable price decline in late trading, falling below the $2,500 mark due to increased selling pressure and a weakening broader risk sentiment. Global trade tensions and renewed U.S. tariff risks contributed to a risk-off flow, with digital assets mirroring traditional markets in their reaction to geopolitical uncertainty.

On-chain data indicated significant inflows to centralized exchanges, with 385,000 ETH moving to Binance. This movement fueled speculation that institutional players might be reducing their positions. Despite the initial drop, ETH recovered modestly to trade around $2,506. Market observers are now closely monitoring whether buyers can sustain this level or if further declines are imminent.

Technical analysis revealed that ETH traded within a volatile range of $48.61 (1.95%) between $2,551.09 and $2,499.09. The price action formed a bullish ascending channel before breaking down in the final hour. Heavy selling emerged near $2,550, with profit-taking accelerating into a sharp reversal. ETH dropped from $2,521.35 to $2,499.09 between 01:53 and 01:54, with combined volume exceeding 48,000 ETH across two minutes. Volume normalized shortly after, and the price recovered slightly, consolidating around the $2,504–$2,508 band. The $2,500 level is now acting as interim support, though momentum remains fragile with signs of distribution still evident in recent volume patterns.

The price fluctuation was driven by fears of whale exits, with large holders potentially reducing their positions. This sentiment was exacerbated by the $2,550 level aligning with the 76.4% Fibonacci retracement, a key technical indicator that often signals potential support or resistance levels. A break below this level could have pushed prices toward the $2,500 support, with further losses potentially sending ETH even lower.

However, the market quickly rebounded, with ETH bouncing back above the $2,500 level. This recovery was driven by a combination of factors, including strong buying pressure from whales and steady inflows into the Ethereum network. The positive net inflow of ETH, despite mixed signals from on-chain metrics, indicated that there was still significant interest and investment in the cryptocurrency. This buying pressure helped to stabilize the price and push it back above the key $2,500 level.

The price fluctuation also highlighted the volatility and sensitivity of the cryptocurrency market to investor sentiment and technical indicators. The sharp rejection near the $2,620 resistance zone, for example, pulled the price back aggressively, demonstrating the market's responsiveness to resistance levels. However, the subsequent recovery showed that the market was not entirely bearish, and there was still potential for upward movement.

The recent price dip and subsequent recovery also underscored the importance of technical analysis in understanding cryptocurrency price movements. The alignment of the $2,550 level with the 76.4% Fibonacci retracement, for example, provided a clear indication of potential support or resistance levels. Similarly, the sharp rejection near the $2,620 resistance zone highlighted the significance of resistance levels in determining price movements.

In conclusion, the recent price fluctuation of ETH below $2,500 and its subsequent recovery above the key level demonstrated the market's sensitivity to investor sentiment and technical indicators. The price dip was driven by fears of whale exits and technical weaknesses, while the recovery was fueled by strong buying pressure and steady inflows. The event highlighted the importance of technical analysis in understanding cryptocurrency price movements and the potential for upward movement in the market.