The cryptocurrency market experienced a sharp selloff, driven by geopolitical tensions. The total market cap fell nearly $300 billion in one day, leading to over $2.5 billion in derivatives liquidations. Ethereum’s funding rates on Binance plunged to -0.028%, matching lows from the 2022 FTX collapse. ETH price broke key support, trading around $2,405 and signaling continued bearish momentum according to technical indicators.
A sharp downturn hit the crypto market, largely driven by escalating tensions between the United States and Iran. Investors turned cautious, sparking broad selloffs across risk assets.
Total cryptocurrency market capitalization dropped by almost $300 billion in a single day. This brought three-day cumulative losses to around $470 billion.
Analyst Darkfost tweeted that this rapid drop resulted in extensive automatic liquidations in derivatives markets. Positions worth over $2.5 billion were closed, with about $1.1 billion from Ethereum contracts.
The sell pressure created a significant divergence between Ethereum perpetual and spot markets. To correct this, funding rates moved into historically negative territory.
For Ethereum on Binance, funding rates hit -0.028%, the lowest since the FTX collapse in 2022. Aggregate funding rates across major exchanges reached -0.078%, indicating strong bearish sentiment.
Ethereum traded at $2,405.69, down 10.74% over 24 hours according to data from Tradingview. The daily chart shows a strong bearish trend in the short to medium term.
ETH has formed lower highs and lower lows since failing to reclaim the $3,000-$3,200 range. The decline has broken key support levels, including mid-range Fibonacci values and volume profile areas.
Momentum indicators support the downtrend, with the RSI at 26 indicating oversold conditions. The MACD lines are deeply negative, with a growing histogram signaling increasing bearish momentum.
The previous support zone of $2,600-$2,500 has now become resistance. The next major support level is seen between $2,200 and $2,000.
