Increasing Middle East conflict tensions might lower Ethereum to $2,200
Ethereum lost support and might fall below $2,207 if negative pressure continues.
On Tuesday, Ethereum (ETH) fell below $2,595 as investors became increasingly cautious due to Middle East conflict worries.
Ethereum falls after Middle East conflict tensions
Following Middle East geopolitical tension, Ethereum and the crypto market fell on Tuesday. Ethereum fell below $3,500 after Iran launched a missile assault on Israel. If tensions rise, market investors expect Israel to retaliate, lowering the top altcoin.
The drop in Ethereum exchange reserves matches investors' quick shift from risk-taking to caution. Ethereum exchange reserves rose by 144K ETH in 24 hours, according to CryptoQuant.
Increased bitcoin spot exchange reserves signal more selling pressure and price drop.
According to Farside investors data, Ethereum ETFs lost $0.8 million on Monday as BlackRock ETHA's $11 million inflow fell short of Grayscale ETHE's $11.8 million negative flows. In contrast, Bitcoin ETFs gained $61.3 million.
Ethereum ETFs have underperformed Bitcoin ETFs since debut, and a BlackRock official expects this to continue.
A BlackRock official told Fortune that ETH ETFs haven't seen substantial volume because conventional investors find Ethereum's investing thesis difficult to understand. The CEO advised issuers to educate clients about ETH's potential and use cases.
Ethereum breaks critical support
Ethereum is down almost 4% to $2,480 on Tuesday. ETH's 24-hour liquidations totaled $87 million, its most since August, with long liquidations at $71.01 million and short liquidations at $16.36 million.
Ethereum started October low, falling below $2,595, despite hopes for a strong crypto market. ETH also fell below its 50-, 100-, and 200-day SMAs, suggesting bearish pressure.
Support at $2,395 is next. Breaking this level might push ETH to $2,207.
Both the RSI and Stochastic Oscillator (Stoch) momentum indicators are below neutral and nearing oversold.
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