Crypto just took a gut punch.
declined to below $2,400 levels, down nearly 10% after a violent wave of liquidations hit the market. followed, dipping toward $103K, while altcoins bled out across the board. This wasn’t a technical breakdown. This was geopolitics, macro, and fear, all slamming into crypto at once.
Here’s what triggered it.
Just before dawn, Israel launched a coordinated airstrike campaign on Iran, targeting nuclear and military sites in Tehran, Natanz, and Khoramabad. Iranian officials confirmed the deaths of high-ranking figures, including IRGC commander and top nuclear scientists. It was the most aggressive escalation in the region in years, and markets went straight into risk-off mode.
soared past $3,460 an ounce. pumped 9%. U.S. stock futures dropped. ETH tanked. Nothing was spared, except safe havens.
Across the crypto market, over $1.15 billion in long positions were liquidated in 24 hours, $293 million in ETH alone, with longs making up over 84% of that. That’s blood. The ETH price broke below major support levels, and the cascading liquidations did the rest. The entire market froze for a moment, everyone watching, few acting.
In yesterday’s article it was mentioned that a drop back to $2600 levels could void the rectangle formation breakout. With the current ETH price, we can expect some short-term consolidation before the next move.
Derivatives sentiment flipped hard.
Funding rates across ETH and most altcoins turned decisively negative. Traders are now being paid to stay long, a signal of just how imbalanced leverage has become after the drop. ETH is printing negative funding on nearly all venues, while Bitcoin is the rare exception, still slightly positive. The market’s message is clear: risk appetite is gone, and cautious hedging is back.
Meanwhile, Powell is warming up.
Next week’s meeting could be another spark. While no rate change is expected, pressure is building. Both & came in slightly cooler, and the bond market is whispering about September cuts. But Trump isn’t whispering, he’s yelling. “Numbskull” was the word he used to describe Powell this week, doubling down on his call for aggressive easing.
And now, with oil spiking and a Middle East war on the table, the Fed walks a tightrope between inflation fears and recession risks.
As for ETH, it’s holding just above $2,500, barely. A weekly close below $2,300 could trigger further downside, especially if the geopolitical pressure continues to mount. But if Iran holds back and Powell surprises the market with a dovish tone next week, a relief bounce back toward $2,700 levels isn’t out of the question.
Still, in this environment, charts aren’t driving the market, headlines are.
Missiles, macro, and central bank messaging are setting the tone.
Stay hedged, stay smart, and stay close to the newswire.
Disclosure: This content is for educational purposes only and does not constitute investment advice. Always DYOR, Do Your Own Research.
Cryptocurrencies are subject to high market risk and vulnerability, despite their high growth potential. Users are strongly advised to conduct thorough research and invest at their own risk.