Ethereum’s funding rates plunged to levels last seen during the FTX collapse as geopolitical tensions triggered a massive market deleveraging. The sell-off liquidated approximately $2.5 billion in crypto positions, with Ethereum accounting for $1.1 billion of that total. Major holder BitMine faces a nearly 40% unrealized loss on its substantial Ethereum position as the price struggles far below its average acquisition cost.
Geopolitical tensions between the U.S. and Iran triggered a sharp risk-off move across cryptocurrency markets. This shock caused Ethereum’s price to plummet toward $2,300, amplifying losses through leveraged derivative positions.
The violent move forced massive liquidations, wiping out roughly $2.5 billion market-wide. Data shows Ethereum positions accounted for approximately $1.1 billion of that total. Forced selling drove perpetual contract prices below spot, pushing funding rates on exchanges like Binance deeply negative.
The institutional holder BitMine reflected the acute market stress, with its Ethereum position now in a significant drawdown. Ethereum traded near $2,415 against the fund’s estimated $3,800 weighted acquisition price, representing an unrealized loss of nearly $5.9 billion.
Ethereum’s 7-day decline reached roughly 17.7% as capital rotated into traditional safe havens. The failed technical breakout above $3,400 reinforced a bearish lower-high structure on the charts.
Weekly momentum indicators confirmed weakening demand, with the RSI trending below neutral. Market structure now tests critical support clustered between $2,400 and $2,600.
