Can Ether Hold $1000 Amid Geopolitical Risk?
Macroeconomic instability returned to the forefront following recent US actions targeting Iranian nuclear sites. Ether (ETH) experienced an initial 1.17% dip, reaching $100,979, before a $50 million short squeeze reversed the trend. However, the market remains volatile.
Ether Price Action: Defense at $1000
While the US strikes occurred over a weekend, mitigating immediate impact on equities, the crypto market wasn't as fortunate. Over $711 million in leveraged positions were liquidated across exchanges, according to CoinGlass. This follows an earlier June drop of 3%, pushing ETH to $100,424.
The current situation presents a critical test of support around $1000. Bulls are aiming for a price rebound to the $103,500 zone and then toward the $105,000 resistance level. However, with further escalation possible, the near-term outlook remains uncertain. This is the second time in June that ETH has tested the $1000 support.
The previous bounce was significant; ETH surged nearly 10% in less than a week, reclaiming a key supply zone. Replicating this performance may prove more challenging given current geopolitical uncertainties. For now, consolidation is anticipated as traders reassess their positions.
Source: TradingView (ETH/USDT)
Market Sentiment and Funding Rates
Negative funding rates indicate a bearish bias in perpetual markets. Traders are currently paying to hold short positions, creating conditions ripe for either a significant price drop or a robust rebound. A $62.63 million long liquidation cluster is highlighted on the 12-hour liquidation heatmap, posing a risk if ETH retests $101,502.
Despite these bearish indicators, the resilience shown by bulls in defending the $1000 support suggests a potential for a bounce similar to that seen earlier in June. This systematic absorption of liquidity might indicate strength amid volatility.
Source: CoinGlass
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