Ethereum Futures Contract See Sharp Sell-Off Amid Escalating Geopolitical Tensions

The top Ethereum altcoin broke out of the narrow consolidation range on Friday, marking the beginning of an expected prolonged Longing trend that is likely to continue into the new week. This altcoin dropped below $2,300 for the first time in a month as tensions between the US, Israel, and Iran escalated yesterday.

This breakout triggered an increase in selling pressure on the Ethereum Futures Contract market, raising concerns about a deeper decline ahead.

Ethereum Bears Tighten Control

The downward trend for ETH is reflected in the buy/sell ratio of buyers, continuously recording negative values since Friday. At the time of writing, this ratio is 0.93 according to CryptoQuant, indicating that sell orders are dominating compared to buy orders in the ETH Futures Contract market.

The taker buy-sell ratio measures the ratio between buy and sell volumes in the asset's Futures Contract market. A value above one indicates buy volume is higher than sell volume, while a value below one suggests more Futures Contract traders are selling their assets.

The gradual decline in ETH's buy/sell ratio in recent days indicates increased selling among Futures Contract traders. This high selling pressure confirms weakening sentiment and could accelerate price decline if it continues.

Additionally, ETH remains below its 20-day Exponential Moving Average (EMA), indicating a bearish sentiment around this asset. At the time of writing, this important Medium moving average creates dynamic resistance on ETH's price at $2,497.

The 20-day EMA measures the average price of the asset over the most recent 20 trading days, focusing on recent prices. When the price drops below the 20-day EMA, it signals short-term price decline momentum and shows sellers are in control.

This further confirms the weakening price structure around ETH, as the asset struggles to regain short-term trend support.

Can Ethereum Hold Steady?

Currently, ETH is trading at $2,272, recording a 6% decline in the context of a broader market retreat over the past 24 hours. With high selling pressure in both spot and Futures Contract markets, ETH risks being pulled to the support level of $2,185.

If this support fails, ETH's price could decline further to $2,027.

However, if buying pressure gradually increases, ETH could recover and climb to $2,424.