Ethereum Price Today: $2,300
- Ethereum experienced increased volatility following US involvement in the Israel-Iran conflict over the weekend.
- Ethereum investors have recorded $750 million in combined realized profits and losses since the market began to decline on Friday.
- ETH found support at $2,110, near the lower boundary of a broader symmetrical triangle and the 100-day SMA.
Ethereum (ETH) climbed 5% on Monday, showing signs of recovery amid reports that Iran launched missiles at a US military base in Qatar. Geopolitical tensions sparked a surge in ETH volatility, resulting in increased realized gains and losses over the weekend.
Ethereum Volatility and Short-Term Holder Selling Spikes Amid Recovery Signs
Ethereum briefly retreated from $2,300 but quickly rebounded after Iran reportedly launched missiles at a US military base in Qatar, according to Axios. The attack comes in retaliation for the US strike on three Iranian nuclear sites over the weekend, a move that pushed ETH towards $2,100.
Analysts at QCP noted on Monday, “The market is at an inflection point, with digital assets oscillating between risk-on momentum and risk-off defensiveness amid ongoing geopolitical uncertainty.”
Most ETH long traders bore the brunt of the sustained price drop, with long liquidations reaching nearly $600 million since Friday, according to data from Coinglass.
The price drop also saw investors record around $500 million in realized profits and over $250 million in losses from their selling activity during the same period. The selling was led by short-term holders, as evidenced by the sharp decline in the 90-day and 180-day Mean Coin Age. A drop in Mean Coin Age across different age cohorts represents increasing distribution and vice versa for an increase.
ETH Network Realized Profit/Loss and Mean Coin Age. Source: Santiment
Sean Dawson, Head of Research at cryptocurrency options exchange Derive, wrote in a note to investors on Monday, “The ETH drop [has] been accompanied by a 15-point jump in implied volatility (IV) to 83%, reflecting an increase in downside hedging and uncertainty.”
“The increase in short-term IV […] confirms that the market is bracing for more instability. Volatility markets are telling us this isn’t over.”
However, spot market investors are buying the dip at a modest pace, with three consecutive days of net exchange outflows reaching nearly 110,000 ETH on Monday, according to data from CryptoQuant.
US spot Ethereum ETFs also extended their weekly inflow streak, recording $124 million in a ninth consecutive week of net inflows, according to a CoinShares report on Monday.
Outflows in crypto exchanges represent buying and vice versa for inflows. In exchange-traded funds (ETFs), the opposite is true.
Ethereum Price Forecast: ETH Finds Support at $2,110, Looks Towards Recovery
After breaking below the lower boundary of a smaller symmetrical triangle and the 50-day exponential moving average (EMA) on Friday, ETH fell more than 10% over the weekend. It eventually rebounded at the key support level of $2,110 near the lower boundary of a broader symmetrical triangle and the 100-day simple moving average (SMA).
ETH/USDT Daily Chart
If ETH stages a recovery and breaks the upper boundary of a descending channel, it could retest resistance near $2,500. A successful move above this resistance could see ETH climb towards the $2,850 level.
To the downside, ETH could fall further towards $1,800 if it fails to hold the key support level of $2,110.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are below their neutral levels but trending upwards, indicating a slowdown in bearish momentum.
Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.
