Ethereum (ETH) came under renewed selling pressure over the weekend after a U.S. airstrike targeted Iranian nuclear sites. The event sent shockwaves through the crypto market with Ethereum’s price briefly falling below $2,200.

While the cryptocurrency has bounced above $2,200, several indicators reveal that the decline might not be over amid the geopolitical tension.

Whether Ethereum’s current price level offers a buying opportunity is a key question for market participants.

This analysis breaks down the technical and on-chain data to help answer it.

US–Iran Escalation Puts ETH on the Edge

From an on-chain perspective, CCN analyzed the In/Out of the Money Around Price (IOMAP) to evaluate ETH support and resistance. According to IntoTheBlock, the primary resistance cluster lies between $2,335 and $2,402.

Over 2 million ETH addresses hold approximately 65 million coins in unrealized losses at this price range.

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This high concentration of out-of-the-money holders presents a hurdle for price recovery. Many of these participants may sell once ETH revisits their entry points.

In contrast, the volume of coins accumulated at the support zone between $1,924 and $2,263 is comparatively lower.

As a result, Ethereum’s price could struggle to break above $2,335. If it approaches this level, selling pressure from traders trying to break even may trigger another decline, potentially driving ETH’s price back below  $2,000.

Bearish Signs All Around

Beyond the overhead resistance, some Ethereum whales have also been selling their coins. For instance, recent data from Arkham Intelligence shows that one wallet deposited ETH worth over $45 million to Binance earlier today.

A closer look at the ETH/BTC daily chart reinforces bearish concerns for Ethereum’s price. Earlier, the pair had formed a bull flag pattern, indicating that ETH might soon begin to outperform Bitcoin.

However, on Saturday, June 21, it broke below the flag’s lower trendline, invalidating the bullish structure.

The Moving Average Convergence Divergence (MACD), which reflects increasing downward pressure, reinforces the outlook. Altogether, these suggest that BTC is more likely to lead the subsequent recovery phase, with Ethereum’s price lagging in the short term.

Despite the drop, crypto analyst. Michaël van de Poppe opined that the decline may have presented an accumulation opportunity for ETH.

“An update on the ETH/BTC chart. Cascaded down after it started losing its trendline. That’s also seen in the huge volume spike during that cascade, as many triggers have been taking place. This should be the area for entries,” van de Poppe wrote on X.

ETH Price Analysis:  No Line to Hold

Reviewing the ETH/USD chart reveals that Ethereum’s price has formed a head and shoulders pattern. Following this formation, ETH has broken below the neckline support at $2,515, suggesting that bears have regained control.

The Awesome Oscillator (AO) has dipped into negative territory. Ethereum could fall below the $2,133 support if this trend continues, with the next target at $1,956—a key psychological level.

If bearish pressure intensifies, ETH’s price may drop to $1,737, aligning with the 0.236 Fibonacci retracement level.

However, on the flip side, a surge in buying pressure — particularly from institutional players or crypto whales — could trigger a reversal. Additionally, market sentiment could stabilize if geopolitical tensions involving the U.S., Israel, and Iran ease.

In such a scenario, ETH may bounce back and rally toward  $3,000, reclaiming critical resistance and indicating bullish momentum.

Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

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