- Ethereum breaks down from consolidation between $2,440 and $2,530, pushing price lower toward critical support near $2,215 zone.
- Open interest in Ethereum futures falls by 13% as increased volatility and geopolitical fear trigger heavy market liquidations.
- Price rejection from $2,827 supply zone signaled the start of the bearish move, putting lower levels like $1,866 into focus.
Ethereum has dropped below a crucial range support following a broader market sell-off triggered by rising geopolitical tensions. The ETH/USDT pair saw a clear breakdown after failing to reclaim its recent consolidation zone.
ETH/USDT Breaks Key Range as Price Nears Critical Support
TedPillows noted that Ethereum lost its rangelow, previously held between $2,440 and $2,530. A recent rejection from the red supply zone near $2,827.74 pushed the asset lower. 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, identified by orange dashed lines. 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.
Escalating Iran Conflict Triggers Drop in ETH Open Interest
Darkfost reported that Ethereum’s open interest fell over 13% within 24 hours, aligning with increased volatility in the crypto futures market. The sharp decline follows escalating conflict in Iran, which has led to panic in broader risk markets.
The unexpected volatility led to mass liquidations. Traders are responding either 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.
Traders Watch for Reclaim or Breakdown from Decision Zone
The chart shared by Ted 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.
