#Gate广场四月发帖挑战 The decline you saw this morning was mainly triggered by a chain reaction caused by tense Middle Eastern tensions over the weekend, combined with technical pullback needs.

Geopolitical shocks (main reason)

Negotiations between the US and Iran stalled over the weekend, and the Strait of Hormuz situation remains tense. This led to a collective risk-off in global risk assets (including cryptocurrencies). Bitcoin led the decline below $72k, followed by Ethereum dropping below $2,200, a typical “weekend panic sell-off” that extended into Monday morning.

Funds and technical factors resonating

- Profit-taking: Ethereum surged above $2,300 last week, and some funds chose to realize profits at high levels, increasing selling pressure.
- Leverage liquidation: Over the past 24 hours, the entire network experienced over $300 million in liquidations, with many long positions being wiped out, creating a “decline → liquidation → further decline” stampede.
- ETF outflows: Recently, US Ethereum spot ETFs have experienced net outflows, with insufficient incremental market funds to absorb selling pressure.

Short-term trend judgment

Currently, market sentiment is leaning toward “extreme fear.” The sharp drop this morning was more of an emotional release. As long as Middle Eastern tensions do not worsen further, Ethereum is likely to fluctuate between $2,150 and $2,250, digesting panic selling.

This article does not constitute investment advice. Cryptocurrency prices are highly volatile; please be cautious of risks.