Ether Plunges 7% as Traders Flee to Dollar and Gold After Israel Strikes Iran

Ether ETH$2,913.12 ETH$2,913.12 tumbled more than 7% over the past 24 hours, falling from a session high of $2,770.56 to as low as $2,477.71 before recovering slightly to $2,536 at press time.

The sharp decline came amid a broad risk-off move across global markets following Israeli airstrikes on Iranian military infrastructure — a major escalation in Middle East tensions that caught investors off guard.

According to a report by CNBC, Israeli Prime Minister Benjamin Netanyahu said the strikes were part of a “targeted military operation” against Iran’s nuclear and missile programs. Iran responded by launching around 100 drones toward Israel in retaliation. While the United States denied direct involvement, Secretary of State Marco Rubio emphasized that America’s priority was protecting its regional forces.

In response to the rising geopolitical risk, investors fled into traditional safe-haven assets. The U.S. dollar rallied 0.6% on Friday morning, reversing a three-year low from the previous day. Gold also surged to near a two-month high, while oil futures spiked as much as 13% before paring gains. The dollar’s strength was particularly notable as it outperformed other safe-haven currencies like the Swiss franc and Japanese yen.

Market strategists noted that the conflict’s depth and duration—especially its impact on oil — would shape investor behavior going forward. ING analysts said the dollar’s rebound was significant, even if more muted than expected. Meanwhile, Bank of America’s survey showed that traders remained heavily short the dollar, though conviction in that trade had not yet collapsed.

ETH’s sharp move lower aligned with similar risk-asset weakness seen across equities, bonds, and commodities. While prices have steadied above the $2,530 level for now, volatility is likely to remain elevated as traders digest the unfolding geopolitical situation.

Technical Analysis Highlights

• ETH fell from $2,770.56 to a low of $2,477.71 — a 10.6% intraday drop.
• Volume surged to 692,000 ETH as selling intensified during U.S. evening hours.
• Price briefly rebounded off the $2,480 zone but faced resistance below $2,550T.
• The latest flash move formed a tight consolidation band between $2,530–$2,540.
• Gradually declining volume suggests short-term exhaustion but no confirmed reversal yet.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.