 ▲ Ethereum (ETH), decline/AI-generated image © |
Ethereum (ETH) fell 4.78% over the past 24 hours to $1,878.19, weighed down by a “triple negative” combination of geopolitical shocks, leveraged liquidations, and institutional fund outflows.
According to CoinMarketCap on Feb. 28 (local time), Ethereum dropped 4.78% in a single day to $1,878.19, underperforming the broader cryptocurrency market, which also showed overall weakness. The decline is attributed to escalating military tensions between a U.S.-Israel coalition and Iran, which have intensified risk-off sentiment across global financial markets.
The geopolitical shock triggered selling pressure across major cryptocurrencies, including Bitcoin, with Ethereum also moving in tandem with broader macro risks. This suggests that price movements were driven more by external systemic risks than by network fundamentals. Going forward, headlines regarding either an easing of tensions or further escalation are expected to be key variables determining short-term direction.
Liquidations in the derivatives market further amplified the decline. Over the past 24 hours, approximately $268 million in liquidations occurred across the crypto market, with Ethereum accounting for the largest share at $88 million. Analysts say forced closures of leveraged long positions accelerated the downturn. At the same time, spot Ethereum ETFs have recorded five consecutive weeks of outflows, indicating that institutional demand has yet to show a clear recovery.
Technically, the $1,850 to $1,900 range is seen as a critical short-term pivot zone. This area coincides with the recent low and the 61.8% Fibonacci retracement level. The Relative Strength Index (RSI) stands at 33.44, approaching oversold territory, leaving room for a short-term rebound. However, if Ethereum closes below $1,850, a retest of the February low at $1,815 is possible. Conversely, reclaiming the psychological resistance level of $2,000 could be interpreted as a sign of short-term downside exhaustion.
Ultimately, the market is currently facing dominant bearish pressure as geopolitical risks and deleveraging unfold simultaneously. Whether the $1,850 support level holds over the next 24 to 48 hours is expected to be the key inflection point determining the short-term trend.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*