Ethereum was slightly lower on Friday, trading below $2,400 as renewed Middle East tensions and concerns about AI-related spending weighed on both cryptocurrency and equity markets. Over the past 24 hours, ETH fell by about 2%, extending weakness after two prior sessions had lifted prices.
Data from CoinGlass pointed to liquidation pressure in the derivatives market, showing $75.4 million in Ethereum liquidations, with long positions accounting for roughly $63.7 million. The selloff spread beyond crypto, with the broader market down about 2% and total liquidations near $423 million across the sector over the same period.
Key takeaways
- Price move: Ethereum declined roughly 2% over 24 hours and remained under the $2,400 level.
- Catalyst: Geopolitical risk—after the U.S. rejected negotiations with Tehran and after further Houthi attacks on Saudi Arabia—fed into broader risk-off trading, while investors also recalibrated spending expectations around AI.
- Derivatives pressure: CoinGlass data showed $75.4 million in ETH liquidations, dominated by long positions.
- Implication for traders: Technical focus has shifted to the $2,355 support zone, with downside levels lining up if that area fails.
What drove the move
The latest downside in ETH appears linked to a mix of macro and geopolitical factors that pushed investors toward safer assets and away from risk. The renewed Middle East developments followed President Donald Trump’s rejection of negotiations with Tehran on Wednesday, while additional Houthi attacks on Saudi Arabia intensified concerns about potential regional supply disruptions.
That risk premium also showed up elsewhere in markets. Brent crude rose about 4% to $114 a barrel, reinforcing the idea that energy-related inflation pressures could return. At the same time, equities weakened as investors lowered expectations for AI spending, with the Nasdaq falling 2.6% despite improved third-quarter technology earnings.
In rates, investors shifted toward government bonds, pushing the benchmark US 10-year Treasury yield below 5%—its lowest level in nearly a month—consistent with a broader risk-off tilt that often pressures high-beta assets such as cryptocurrencies.
Market reaction in crypto derivatives and on-chain signals
The immediate market reaction was most visible in liquidations. CoinGlass data showed Ethereum liquidations of $75.4 million, and the bulk of those were tied to long exposure. When prices fall quickly, forced closing of long positions can accelerate downside momentum, contributing to a short-term feedback loop between spot weakness and derivatives selling.
Still, on-chain data provided a more nuanced picture beneath the surface. CryptoQuant reported that exchange reserves fell by approximately 170,000 ETH over 48 hours to 14.882 million ETH. A drop in exchange reserves can indicate less immediately available supply on trading venues, though it does not conclusively prove that holders are buying for long-term investment—coins can also move for other reasons.
Separate tracking by Lookonchain also highlighted a pattern of accumulation by some large wallets during the prior 24 hours, suggesting not all activity was purely liquidation-driven. One wallet identified by Lookonchain sold 246.25 BTC (valued at approximately $20.64 million) to buy 8,286 ETH on Thursday. Over the previous 11 days, the same wallet reportedly sold a total of 1,917.7 BTC and acquired 64,545 ETH, indicating a notable allocation shift from bitcoin into ether.
While such wallet-level actions can influence sentiment at the margin, they remain specific to individual holders and do not confirm a broad-based rotation across the market. The near-term price action, meanwhile, was still dominated by liquidation pressure.
Technical outlook: focus on $2,355 support
On the charts, ETH has been consolidating between key levels, with recent weakness tied to buyers failing to hold above the convergence of the 20-day and 50-day exponential moving averages. Those shorter-term averages have repeatedly capped rebounds over the past week, keeping the short-term tone bearish.
Attention is now on the 100-day EMA and the nearby $2,355 horizontal support area, which has held through repeated tests over the past eight days. A sustained break below that zone would shift focus toward $2,204, followed by deeper support near $2,026.
For a recovery to gain traction, ETH would likely need to close above its short-term EMAs and then hold them as support. Resistance levels are set at $2,491 and $2,571, and an extended bullish scenario could bring $2,773 into view—though that would require the market to reclaim key averages and momentum to improve.
Momentum indicators continue to lean toward sellers. The 14-day relative strength index is around 40, while the stochastic oscillator is near 26, with both measures trending lower—signaling weakening momentum as ETH approaches another test of its technical floor.
Bigger picture and what to watch next
For ETH, the next catalysts likely depend on whether geopolitical risk continues to dominate cross-asset positioning and whether equity investors sustain concerns about AI spending. With oil firming and Treasury yields easing in the wake of risk-off flows, traders will likely watch for any further moves in energy prices, benchmark rates, and broader risk appetite.
In the near term, technical levels around $2,355 remain critical. A decisive break below would raise the odds of a deeper test of support, while a sustained hold above short-term moving averages would be the first step toward rebuilding upward momentum. Investors will also look ahead to upcoming macro data and Federal Reserve communications for clues on how long the current rate-sensitive backdrop will persist.
