"Downward Pressure Continues Amid Geopolitical Crisis" Ethereum Expected to Fall to $2,100

▲ Ethereum (ETH)/AI-generated image ©

Amid escalating geopolitical tensions in the Middle East shaking the global virtual asset market, major altcoins including Ethereum (ETH) and XRP (Ripple) are taking a direct hit and faltering due to a combination of massive long position liquidations and the exit of institutional investors.

According to cryptocurrency market data aggregator CoinMarketCap on April 13 (local time), Ethereum fell by 4.23% in the last 24 hours, plummeting to $2,199.76. This is attributed to extreme risk aversion as peace talks between the US and Iran broke down and US President Donald Trump declared a naval blockade of the Strait of Hormuz. Such macroeconomic shocks caused the total market capitalization of the virtual asset market to evaporate by 3%.

The sudden price drop triggered a cascade of liquidations in the derivatives market, further amplifying the decline. In just one day, $110 million worth of long positions betting on an increase in the Ethereum market were forcibly liquidated, increasing downward pressure on the market. Adding to this, news that Ether Machine abruptly canceled its $1.5 billion Nasdaq-listed SPAC deal has significantly dampened the narrative momentum of institutional investors.

From a technical analysis perspective, Ethereum is currently being tested at the $2,200 level, which has served as a strong support and resistance zone. The immediate key defense line is $2,160. If this level holds, there is a high probability of a sideways consolidation phase between $2,160 and $2,280. However, if selling pressure intensifies and the $2,160 level is decisively broken, there is a risk of a sharp decline towards the next major support level around $2,100.

Ultimately, the short-term market direction is expected to be dictated more by geopolitical variables in the Middle East than by on-chain fundamentals. In the current downturn, marked by leveraged liquidations and macroeconomic shocks, global investors are keenly watching whether Ethereum can defend the $2,160 support line and signal market stabilization, or if it will plunge further into a downward spiral amid rising tensions in the Strait of Hormuz.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*