Ethereum Plummets 13% Amid Iran Conflict Panic

Ethereum's price has experienced a significant decline, breaking down from a consolidation range between $2,440 and $2,530. This breakdown has pushed the price lower towards a critical support zone near $2,215. The decline was triggered by a broader market sell-off, which was itself a result of escalating geopolitical tensions, particularly the conflict in Iran.

The ETH/USDT pair saw a clear breakdown after failing to reclaim its recent consolidation zone. The price rejection from the $2,827 supply zone signaled the start of the bearish move, putting lower levels like $1,866 into focus. The current price hovers close to $2,270, reflecting bearish momentum. The breakdown breached a green demand zone, with the next area of interest around $2,215. Should Ethereum fail to hold this level, a slide toward $1,866 or even $1,830 could follow. However, a successful reclaim of the $2,440 zone could spark a recovery back to $2,530.

This decision point reflects high uncertainty as traders monitor whether ETH will find support or continue its downward trend. The escalating conflict in Iran has led to panic in broader risk markets, causing Ethereum’s open interest to fall over 13% within 24 hours. The sharp decline in open interest aligns with increased volatility in the crypto futures market. The unexpected volatility led to mass liquidations, with traders responding by closing positions or reducing leverage to limit future losses. This behavior represents a cautious response to retail traders re-evaluating short-term risk.

For active traders, such significant volatility usually provides the opportunity for short-term repositioning. But the overall sentiment is still cautious amid geopolitical uncertainty. The chart outlines both bearish and bullish pathways. ETH remains in a critical decision zone between the $2,215 support and $2,440 resistance. A sustained move above the latter could reverse short-term losses. Conversely, if Ethereum fails to hold the $2,215 level, it puts lower targets at risk, which includes $1,866. Price action has been consistent, but we will be watching closely in the coming days. Under the conditions, traders will likely pay close attention as Ethereum tests key levels that is experiencing volatile conditions.