Ethereum Price Dives 3.4% Amid Rising Global Uncertainty

The recent developments in the Middle East have sent shockwaves through global markets, with the Ethereum price being no exception. According to data from crypto.news, Ethereum (ETH) price fell 3.4% below the $2,100 support after reports emerged that Trump will not call off the strikes at Iranian infrastructure unless Tehran commits to reopening the Strait of Hormuz.

The Strait of Hormuz is a crucial maritime corridor that handles 20% of all global oil trade, making it a key target for any potential conflict. The tensions in the region have caused investors to become increasingly risk-averse, leading to a decline in Ethereum price and other traditionally safe-haven assets such as gold and silver.

Technical analysis suggests that Ethereum price is forming a double top pattern on the 4-hour chart, which could trigger a further decline if the price falls below $2,000. The neckline of this pattern lies at around $2,017, and a breach of this level would confirm the bearish signal.

Investors should be aware that a confirmed breakdown below $2,000 could lead to liquidations of up to $1.41B in long positions, which could further exacerbate the decline in Ethereum price.