
Ethereum Plunges Amid Geopolitical Turmoil and Whale Activity
Jun 23
2 min read
Ethereum's price has plummeted significantly, experiencing its largest single-day loss since April 6th, amidst escalating geopolitical tensions following US strikes on Iranian nuclear facilities. This downturn has been exacerbated by large whale transfers and a general risk-off sentiment in the crypto market, leading to substantial liquidations.
Geopolitical Tensions Fuel Market Plunge
The crypto market experienced a sharp downturn following US military strikes on three Iranian nuclear facilities. This escalation in the ongoing conflict between Israel and Iran sent shockwaves through global markets, with cryptocurrencies bearing a significant brunt. Ethereum, in particular, saw a substantial drop, falling 7.4% in 24 hours to $2,260, marking its worst single-day performance since April 6th. Bitcoin, while also affected, demonstrated more resilience, declining by 1.4% to $102,418.
Massive Liquidations and Whale Activity
The market turmoil resulted in over $701 million in crypto liquidations, with long positions accounting for the vast majority at $618.69 million. Ethereum liquidations alone totaled $296 million, with $269 million from long positions. Despite the overall bearish sentiment, a notable whale acquired approximately 9,400 ETH, valued at about $39 million, increasing their total holdings to $330 million. This accumulation by a large investor contrasts with the panic selling observed among smaller investors.
Market Sentiment and Future Outlook
Uncertainty stemming from the Middle East crisis has led to muted activity in Ethereum's on-chain data. US spot Ethereum exchange-traded funds (ETFs) have seen a considerable drop in inflows, registering only $32 million in net inflows over two days, a stark contrast to the $170 million seen in the previous week. Prediction markets, such as Myriad, show a bearish outlook for Ethereum, with over 70% of users expecting its price to fall below $2,000 by year-end. Investors are increasingly employing risk-off strategies, with a rise in put options around the $2,450 to $2,500 strike price, indicating expectations of further downside.
Key Takeaways
Ethereum experienced a significant price drop of 10%, its largest single-day loss since April 6th.
The downturn was primarily triggered by escalating geopolitical tensions and US strikes on Iranian nuclear facilities.
Over $701 million in crypto long positions were liquidated, with Ethereum accounting for $296 million.
Despite the market crash, a large Ethereum whale acquired $39 million worth of ETH.
Market sentiment remains bearish, with muted on-chain activity and increased put option purchases indicating expectations of further price declines.
Sources
Crypto Market Liquidations Top $701M as US Strikes Hit Iran's Nuclear Facilities, Decrypt.
ETH: Ethereum Falls Below $2,2k, Worst fall since April 6, FXLeaders.
ETH stays muted as uncertainty from Middle East crisis weighs on market sentiment, FXStreet.
‘Doomsday scenario’—Bitcoin suddenly drops under $100,000, Forbes Australia.
Geopolitical Shockwaves Hit Ethereum Hard While Bitcoin Stays Resilient, Cryptodnes.bg.