Ethereum, the second-largest cryptocurrency by market capitalization, experienced a significant decline of 10% today in response to military actions taken by the United States and Israel against Iran. This sharp downturn triggered a wave of liquidations across the cryptocurrency market, resulting in the loss of billions in market value.
The coordinated operation reportedly targeted an Iranian military facility aimed at countering perceived nuclear threats. In retaliation, Iran launched missile and drone attacks on Israeli and U.S. military bases in the region, including reported strikes toward Qatar, Bahrain, and Abu Dhabi.
Within an hour of the news breaking, the price of ETH fell to approximately $1,850, erasing all gains made just days prior when it briefly reached $2,000. Over the past month, the price of Ethereum has declined nearly 37%.
The dramatic price drop led to extensive liquidations in the derivatives markets, with a total of $155.40 million liquidated in the past 24 hours. Approximately 16,630 traders were affected, with around 88% of these liquidations linked to long positions. Notably, trader Machi Big Brother suffered substantial losses, having his 25x leveraged position of 304 ETH forcibly closed near the $1,863 mark. Just four days earlier, he had re-entered the market with a $245,000 deposit in USDC.
Despite the turmoil affecting retail traders, data from Cryptoquant indicates that some large holders capitalized on the price dip, viewing it as a potential buying opportunity. One whale, identified as 0x172, borrowed $7 million USDC from the Aave platform during this downturn and purchased 3,753 ETH at an average price of $1,865, increasing their holdings to 15,964 ETH valued at about $29.68 million.
This activity suggests that while the market faces significant volatility, some investors perceive this correction as a temporary setback rather than an indication of a longer-term decline in Ethereum”s value.
