Key Insights:
- Ethereum price broke out of a long-term downtrend and is now consolidating within a rising wedge pattern.
- Ethereum is holding above $2,500 support while RSI shows sustained strength despite geopolitical uncertainty.
- Whale sold 501 ETH for $1.29M but still holds over $20.7M amid rising global tensions.
A sharp spike in geopolitical tension in the Middle East is causing fear in the crypto market. Notably, analysts are weighing the risks associated with the military development between Israel and Iran. At the same time, Ethereum (ETH) price is consolidating at a crucial point following a couple of weeks of structured recovery.
Ethereum Price Maintains Structure After Breaking Downtrend
Recently, Ethereum price broke out of an old descending wedge pattern, which had existed since November 2024. According to analyst Crypto Caesar, ETH price had bottomed beneath $1,800 in mid-April 2025.
Additionally, it has since established a bullish internal break of structure (iBOS) because of a change in the sentiment in the market. The breakout was technically confirmed through both price action and a momentum rebound visible in the Relative Strength Index (RSI).
Since the reversal, Ethereum price has stayed in a rising wedge pattern since then, slowly approaching a possible breakout point at around $2,900. It has been consolidating within the current range of support and resistance between $2,450 and $2,850 for some weeks.
Despite intermittent pullbacks, the market has respected key support zones, reflecting the possibility of a continuation if external factors remain stable.
Ethereum Price Holds Above $2,500
Besides, Crypto Caesar reported that Ethereum price has held the support area above the $2,500 mark. The daily chart is showing the RSI above 50, meaning the momentum is still present despite the price still consolidating. The existence of this midline level is a sign that strength continues, particularly where there are higher lows of price action.
In addition, the asset’s consolidation in a rising wedge usually implies continuation following the accumulation. However, it is greatly reliant on whether the overall market index remains in a neutral or bullish trend.
Nonetheless, breaking below the support area of $2,450-2,500 would imply more risks, whereas a tight break above $2,850 could leave a bigger route to $3,250 and beyond.
Geopolitical Tensions Introduce Volatility Risk
Market analysts have started anticipating an increase in volatility due to tensions between Israel and Iran. Analyst Ted Pillows has noted that U.S. President Donald Trump publicly urged mass evacuations in Tehran.
Additionally, the President is returning early from the G7 Summit, adding urgency to the political climate. Furthermore, the analyst is monitoring whether the U.S. could be drawn directly into the conflict, an event that could introduce broad-based risk-off sentiment across financial markets.
In these cases, large digital assets such as Ethereum are usually responsive when liquidity changes. Ted stated that this arrangement is similar to some events of the prior black swan events, including the COVID-19 crash.
Historically, the cryptocurrency industry is more vulnerable to abruptness during macro events. Moreover, various short-term responses can update technical patterns as uncertainty accumulates.
Ethereum Whale Activity
Meanwhile, on-chain data tracked by analyst Ted showed a recent Ethereum transaction from a long-term holder. The wallet transferred 501 ETH, valued at approximately $1.29 million, to Kraken exchange. The selloff was likely a response to global uncertainty and the potential for near-term market disruption.
In spite of this transfer, the wallet continues to possess Ethereum worth over $20.76 million. This indicates that there is profit taking but no evidence of a large-scale liquidation.
Historical activity from this wallet showed periodic deposits to Gemini and Coinbase. This further reinforced its role as a long-standing participant rather than a short-term speculator. At the time of writing, Ethereum price traded at $ 2,470, down 6% on the day, with intraday resistance near $2,450 and declining momentum confirming near-term selling pressure.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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