Ethereum Drops 12.8% Amid Geopolitical Tensions, Whales Accumulate

Ethereum's price has recently experienced a significant decline, dropping below the $2,200 mark. As of the latest update, the cryptocurrency is trading at approximately $2,190.35 per coin. This drop has been attributed to a variety of factors, including geopolitical tensions and a general risk-off sentiment in the market. The price decline has been particularly sharp, with Ethereum falling from around $2,448 to $2,300, indicating that bears are currently in control of the market.

The liquidation chart reveals a massive spike in long liquidations over the past few days, corresponding with Ethereum's aggressive move down to $2,200. This suggests that many traders who had taken long positions on Ethereum have been forced to close their positions due to the price drop. The market's inability to hold the $2,200–$2,250 zone has raised concerns about further declines. If the market does not hold this zone, Ethereum could drop another 22% from its current level, according to analysts' forecasts. A reversal is possible only if Ethereum's daily price action shows signs of recovery.

Despite the bearish sentiment, there have been signs of institutional confidence in Ethereum. Major ETH whales have been accumulating millions in ETH, indicating that large investors see the current price levels as good entry points. For instance, a well-known Ethereum whale with the address 0x7355…213 bought about 9,400 ETH worth $39 million in two big transactions. This brought their total holdings to $330 million. Glassnode’s broader whale data shows that Ethereum mega-whales who own 10,000 ETH or more added over 116,893 ETH worth $265.30 million on June 21 alone. This synchronized purchase during a poor market shows that institutional investors see present prices as good entry points rather than causes to worry.

Technical analysis suggests a potential recovery of up to 25% if Ethereum can maintain support above $2,150. Market expert Sensei says that ETH is above an important rising trendline that helped a 55% surge in April-May 2025. Ethereum could try to break through the $2,735 barrier level if this pattern keeps happening. This would be almost 25% higher than where it is now. However, the technical picture is still hard to read in the short run. ETH has dropped below important support at $2,362 and closed below its 50-day exponential moving average at $2,416. The RSI is currently at 34, which is close to becoming oversold. The MACD indicators show a bearish crossover with rising red histogram bars below the neutral line.

Downside risks and support levels remain critical. If the current support levels don’t hold, the bearish technical setup suggests that prices could go down much more. Above $2,150, there are important support zones, and above $2,000, there is a more important level. If selling pressure rises, analysts say that ETH might drop as low as $1,954 or possibly $1,750 in a longer decline. A whale wallet that had been inactive for a long time moved 129,392 ETH worth about $313 million to Coinbase. This was its first large transaction since November 2022, which added to the downward pressure. Big inflows into exchanges like these usually happen before people start selling, which might keep prices low.

Ethereum’s recent drop happened at the same time as a general risk-off mood in the market after reports of US military strikes on Iran, which made the existing Israel-Iran crisis worse. This geopolitical situation has made Ethereum do worse than Bitcoin, which only lost 4.7% compared to Ethereum’s 12.8% loss during the same time. The chances of recovery depend a lot on how stable both geopolitical tensions and Bitcoin’s performance become, since Ethereum often follows the leader in the cryptocurrency market. The weekly chart shows five doji patterns in a row before the latest drop. This shows that investors are unsure of what to do and there is no agreement on direction.

Even though the market action right now looks negative, the fact that whales are buying a lot of Ethereum during times of weakness implies that smart money still believes in the long-term potential of the coin. Traders should keep a close eye on the $2,150-$2,200 support zone. If the price stays above these levels, it might lead to a 25% recovery toward $2,735. On the other hand, a break below $2,150 would probably speed up the drop below the $2,000 psychological support level.