Ethereum price falls 8% as Israel-Iran сonflict shakes markets
ETH futures show a bearish shift
Ethereum (ETH) plunged more than 8% in the past 24 hours, rattled by a sharp uptick in geopolitical tensions following an Israeli airstrike on Iran.
The unexpected escalation in the Middle East has triggered widespread volatility, prompting a wave of risk-off sentiment across both traditional and crypto markets.
Key takeaways
- Ethereum drops over 8% as market reacts to Israel’s airstrike on Iran.
- ETH futures show a bearish shift, with increased short positions.
- Long/short ratio at 0.86 reflects rising pessimism among traders.
Ethereum Futures Show Bearish Sentiment
Traders rushed to exit positions as fear of a broader regional conflict intensified, and on-chain data indicates a surge in short positions against ETH. At press time, Ethereum’s long/short ratio stands at 0.86, signaling that a growing number of market participants are betting on further downside for the world’s second-largest cryptocurrency.
ETH Long/Short Ratio. Source: Coinglass
Data from on-chain analytics reveals that ETH’s Balance of Power indicator has tilted in favor of sellers, indicating a significant rise in downward pressure. The spike in short positions across futures markets underscores traders' expectations for extended losses. The geopolitical flashpoint has shifted the market’s risk appetite, resulting in swift capital outflows from high-volatility assets like Ethereum.
The sudden downturn highlights how global events, even those unrelated to macroeconomic policy, can dramatically impact crypto markets that operate continuously and with minimal friction.
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Investor confidence tested amid uncertainty
The broader crypto ecosystem, already navigating a fragile recovery phase, has shown vulnerability in the face of real-world conflict. As ETH struggles to regain footing, traders and institutional observers will be closely watching support levels and behavioral metrics for signs of stabilization.
If geopolitical tensions escalate further, Ethereum may continue to face pressure, particularly if short interest remains high and confidence continues to erode across the market.
Read also: Bitcoin price slides for third day as Israel-Iran conflict fuels sentiment shift.
