Ethereum Drops 14% Amid Geopolitical Tensions, Bitcoin Dominance Rises

Ethereum's price has been closely following Bitcoin's bearish trend, dropping from $2800 and confirming a correction that could deepen if bulls fail to defend the local support below $2400. The recent geopolitical tensions between the Middle East nations, Israel and Iran, have significantly impacted the crypto markets, leading to over a billion liquidations in the past 24 hours. This has caused the top token to trigger an inverse v-shaped rejection, invalidating a bullish pattern and adversely impacting Ethereum's price rally.

Despite the rejection, Ethereum's price remains hopeful for a strong rebound as it trades within a parallel channel. The price continues to move between the 50 and 200-day moving averages, aiming for a bullish crossover or the Golden cross. However, the Relative Strength Index (RSI) remains stuck within a descending parallel channel, which could be a concern for the upcoming price action. If the correction intensifies, Ethereum's price is expected to test the lower support of the channel close to $2400, followed by a strong rebound to the resistance.

While Ethereum bulls are defending the price from the critical support, the chart patterns have not yet confirmed a rise over the bearish trend. Bitcoin dominance has begun to rise, suggesting that liquidity flow has once again shifted into the star token. The Altcoin season index had risen beyond Bitcoin, which was speculated to trigger an Altseason, but the levels have dropped again, hinting towards a Bitcoin season. The current market conditions are not favorable for an Altseason as altcoins do not show any major change in the short term. This suggests that Bitcoin's price could remain at the center stage, and other altcoins are expected to follow. Hence, the Altseason may not trigger in the short term, but with a change in market conditions, one can expect the rise of altcoins, provided Bitcoin dominance drops below 55.