Ethereum Drops 13% Amid Middle East Crisis, Whale Boldly Spends $127 Million to Buy Bottom
Despite the market being shaken by geopolitical tensions, a crypto whale has unexpectedly spent $127 million to buy 48,825 ETH, showing strong confidence in Ethereum's long-term resilience despite the short-term risks.
Israel-Iran Crisis Blows Away Market Cap, ETH Plunges
On Friday morning, the global financial market was shaken by news that Israel carried out an airstrike on Iran, raising concerns about escalating conflict in the Middle East. Reacting quickly, the crypto market witnessed a wave of fierce sell-offs. Ethereum (ETH) led the decline with a 13% drop, from $2,655 to $2,469 in just 3 hours.
Bull trap or rare "Black Friday" opportunity?
Data from analytics platform LookOnChain revealed that a large investor took advantage of this deep drop to buy ETH on exchanges such as Wintermute and Coinbase, at an average price of around $2,605. The total transaction amounted to $127 million, indicating a confident buying move at the bottom, although Ethereum then continued to fall further, failing to hold the newly established support level.
Against this backdrop, the Cryptocurrency Fear and Greed Index cooled from the “moderate greed” zone to “neutral”, reflecting widespread cautious sentiment.
Technical Analysis: Bull Trap Warning Clearly
Technical indicators paint a gloomy picture:
9 consecutive red candles on the 4-hour chart indicate overwhelming selling pressure.
The Bull Bear Power Index (BBP) fell to its lowest level since April 7, confirming the dominance of the bears.
The Parabolic SAR indicator flashes a bearish signal with blue dots appearing on the price line.
Chaikin Money Flow (CMF) drops below zero – indicating that money is flowing out of ETH.
Overall, this is a technical structure commonly seen in “bull traps”, where the market creates a sense of recovery to attract buyers, then quickly reverses sharply downwards.
The downside: Leveraged shorts also suffer large losses
Despite ETH’s sharp decline, not all sellers are winners. Data from derivatives exchanges shows:
Overleveraged short positions have been liquidated with a total loss of nearly $57 million over the past 24 hours.
Trading volume in the leveraged market increased by 23.2%, indicating increased interest from speculators in ETH’s strong volatility.
Bright Spotlight: Whales and Long-Term Investors See Value
While the short-term market continues to be volatile, the actions of whales buying $127 million worth of ETH suggest that long-term confidence remains strong. This fits the accumulation pattern seen during sharp corrections, where large players seek value as the market panics.
Summary:
While Ethereum is experiencing one of its steepest declines of the month due to geopolitical tensions and negative market sentiment, the actions of whales and money flow indicators still suggest a recovery. However, retail investors should be cautious with technical signals to avoid falling into a “bull trap” that is a common occurrence in this volatile market.