Ethereum (ETH) is showing early signs of recovery after a turbulent weekend, as global headlines shift to the Middle East. The recent escalation between Israel and Iran, which now involves a US military base in Qatar, has injected fresh volatility into the crypto markets, with Ethereum at the center of the action.
Geopolitical Shocks Drive ETH Volatility
Over the weekend, Ethereum’s price dipped sharply to $2,110, tracking the fallout from Iran’s reported missile strike on a US base in Qatar—a direct response to US attacks on Iranian nuclear sites. This geopolitical uncertainty triggered a surge in market activity, with realized profits and losses for ETH investors totaling $750 million since Friday. Most of this movement came from short-term holders, as indicated by a notable drop in the 90 and 180-day Mean Coin Age, a metric that signals increased selling pressure from recent buyers.
Liquidations and Volatility Spike
The sell-off led to nearly $600 million in long position liquidations, highlighting the risks for leveraged traders during periods of heightened uncertainty. Implied volatility for ETH options jumped 15 points to 83%, reflecting the market’s expectation of further price swings. As Sean Dawson, Head of Research at Derive, noted, “Volatility markets are telling us this isn’t over.”
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ETH Network Realized Profit/Loss & Mean Coin Age. Source: Santiment
Signs of Recovery: Dip Buying and ETF Inflows
Despite the turbulence, some investors are seeing opportunity. Spot market participants have been “buying the dip,” with three consecutive days of net outflows from exchanges totaling nearly 110,000 ETH. This trend suggests that more ETH is being moved off exchanges, typically a bullish sign as investors opt for longer-term holding.
Meanwhile, US spot Ethereum ETFs have extended their streak of net inflows, adding $124 million over the past week. This continued institutional interest provides a stabilizing force amid the broader market uncertainty.
Technical Picture: Key Levels to Watch
Technically, ETH found support at $2,110, near the lower boundary of a broader symmetrical triangle and the 100-day Simple Moving Average (SMA). If Ethereum can break above the upper boundary of its current descending channel, a retest of the $2,500 resistance is possible. A successful move above this level could open the door to $2,850. On the downside, failure to hold $2,110 could see ETH revisit the $1,800 zone.
Momentum indicators like the Relative Strength Index (RSI) and Stochastic Oscillator are trending upward from oversold levels, hinting at a potential slowdown in bearish momentum.
Market at a Crossroads
As QCP analysts put it, “The market remains at an inflection point, with digital assets straddling the line between risk-on momentum and risk-off defensiveness amid ongoing geopolitical uncertainty.” For now, Ethereum’s price action will likely remain sensitive to further developments in the Middle East and shifts in global risk appetite.
For more on Ethereum’s price trends, see Ethereum price prediction.
