Here’s Why ETH May Crash Even With US-Iran Deal

What will happen to ETH if the conflict in the Middle East comes to an end?

While the war between the United States (backed by Israel) and Iran has dragged on for about a month, recent indicators indicate that inflation may be imminent.

Some industry participants believe that the agreement could eventually act as a catalyst for the cryptocurrency market, but one prominent analyst thinks that such a development could cause a drop in the price of Ethereum.

ETH Controversial

The bear market observed in the past few months has caused the broader crypto market to drop significantly from its peak registered last year. In addition, the war in the Middle East has made matters worse by spreading panic and uncertainty among investors.

According to X user Ted, however, ETH’s reaction to the controversy has been irrational. When the US and Iran began exchanging strikes, many wanted to sell, however the price fell from $2,000 to around $1,850 – a clear drop but perhaps far from melting the crowd that was feared.

Recently, several developments have indicated that there may be a ceasefire. The BBC reported that Iran had received a 15-point peace plan from the United States, and Iranian officials had opened a key oil corridor, the Strait of Hormuz, to “non-hostile ships.” Oil prices fell on the news, while Ted said people are now expecting an ETH pump after a potential peace deal.

However, he believes that the second largest cryptocurrency can post a small resurgence after a positive development (if it really happens), followed by a decline in new currencies.

Some analysts say that ETH is on the way and the next move will depend heavily on certain drivers. Merlijn The Trader, for example, emphasized the importance of the psychological level of $2K, suggesting that a hold above that mark could result in a price explosion to the massive $12,000. On the other hand, losing it will break nine years of support.

You may also like:

Meanwhile, Crypto-wise thought the market was “high,” with the recent whale sell-off acting as a bearish force, while the ongoing swing from trading to holding gave the opposite bullish signal.

‘General Buy Zone?’

Others are completely optimistic, suggesting that ETH has reached levels that can be interpreted as perfect buying opportunities. Ali Martinez, for example, argued that a stock has entered a “normal buy zone” because the Market Value to Realized Value (MVRV) has fallen below 1.

The analyst reminded that in the past, a decrease in such an area has been followed by a large increase in prices. He also outlined several MVRV price bands designed to serve as a roadmap, with $4,632/$5,624 set as long-term “expansion” areas.

Currently, BitMine continues to acquire ETH following a new purchase of approximately 65,000 coins for approximately $140 million. The company now owns about 4% of the stock in circulation, while its strong accumulation may encourage smaller players to follow suit and invest in the ecosystem.