Ethereum fell below $2,400 on Sept. 2 as renewed US-Iran fighting pushed oil and Treasury yields higher, cooling demand for risk assets. Roughly $94.2 million in ETH futures positions were liquidated in 24 hours, even as one whale opened a $44.85 million long bet while another kept moving coins onto exchanges.
Ethereum breaks below $2,400
Ethereum dropped to an intraday low of $2,356 on Sept. 2 after failing to clear resistance near $2,550, according to crypto.news. The token traded near $2,372, down about 1.9% on the day, extending a pullback from the Aug. 27-28 highs near $2,510.
Sellers pushed the token through the $2,400 psychological level that had limited declines over the previous two weeks. ETH still traded above its daily 20-day, 50-day, 100-day, and 200-day moving averages, near $2,299, $2,054, $1,903, and $2,030 respectively, keeping the medium-term structure intact even as the short-term trend weakened.
US-Iran tensions add pressure
The US and Iran exchanged fresh strikes near the Strait of Hormuz, pushing Brent crude close to $95 a barrel and fueling a broader bond selloff. The US 10-year Treasury yield climbed above 4.8%, its highest level in nearly three years, reducing the appeal of risk assets such as ETH.
Markets are now pricing a roughly 68% probability of a Federal Reserve rate hike at the Sept. 16 meeting, according to Reuters figures cited by crypto.news, adding another headwind to a quick recovery.
Liquidations and whale activity diverge
Derivatives data amplified the move. CoinGlass figures cited by crypto.news showed about $94.2 million in ETH futures liquidated over 24 hours. Over the same stretch, AMBCrypto reported $63.6 million in long liquidations against $12.6 million in shorts.
Even so, a trader used 25x leverage to reopen a position after seven months of inactivity, buying 18,587 ETH worth $44.85 million, Lookonchain data shared by AMBCrypto showed. Separately, another wallet deposited 103,252 ETH worth $253 million into exchanges and still holds 64,603 ETH worth $155 million, adding further selling pressure.
Momentum cools near key support
Ethereum's daily RSI fell to 59.46 after moving above overbought territory during the August rally, while its 4-hour MACD line stood near minus 13.66, below its signal line, with the Awesome Oscillator at minus 45.49. AMBCrypto separately noted its own RSI dropped to 63, still in bullish territory despite a bearish MACD crossover.
The first major support sits between $2,350 and the 20-day average near $2,299. A daily close below that area could expose the $2,200 level, while reclaiming $2,400 and breaking above the $2,500-$2,550 zone would weaken the bearish setup.
Sources: crypto.news, AMBCrypto
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