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Is $1,500 Next for ETH After the ‘Aggressive Deleveraging’?

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Is $1,500 Next for ETH After the 'Aggressive Deleveraging'?

Ethereum has entered an aggressive deleveraging phase, breaking decisively lower after weeks of distribution near the upper boundary of its medium-term range. A key macro driver behind this move appears to be the recent escalation of geopolitical tensions in the Middle East, which has pushed broader risk assets into de-risking mode and amplified existing technical fragilities in the ETH market.

The combination of macro uncertainty, elevated leverage, and vulnerable chart structure has produced a sharp unwind rather than a controlled pullback.

Ethereum Price Analysis: The Daily Chart

On the daily chart, ETH has broken down from the prior ascending structure that extended from the late-2025 lows and has failed to break above the 100-day and 200-day moving averages, which are now both located above the $3,000 mark. This price behavior has confirmed a transition from corrective sideways action into a clear downside trend.

The price has also broken below the first major demand band around the $2,200-$2,000 area, which coincides with a prior consolidation base and the origin of the last strong impulsive advance. Daily RSI has also fallen into deeply oversold territory in the low 20s, indicating stretched short-term conditions.

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However, as long as the market remains capped below the broken moving averages and former support around $2,200, the broader structure continues to point toward a bear-market rally at best rather than a confirmed reversal.

ETH/USDT 4-Hour Chart

The 4-hour chart highlights the velocity of the current sell-off, with ETH cascading lower from the previously defended $2,800–$2,900 support and barely pausing on intermediate levels. The market is now trying to stabilize around the $1,850–$1,900 range, and a mild bullish divergence is emerging on the 4-hour RSI, where momentum has begun to print higher lows despite marginally lower price lows.

This configuration often signals that forced selling pressure is easing and that a short-term relief bounce or sideways consolidation may follow.

Immediate resistance now sits in the $2,100–$2,200 area, with a stronger supply zone at $2,800. Any rebound that stalls below these bands would keep the intraday trend firmly bearish, while a clean breakdown below the recent $1,800 low would pave the way toward the deeper demand zone at $1,500.

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Sentiment Analysis

On the derivatives side, open interest across Ethereum futures has collapsed from elevated levels above 30 billion USD to nearly a third that size, tracking the price decline and signaling a large-scale liquidation cascade rather than an orderly reduction in positioning. This sharp contraction in open interest indicates that a significant portion of leveraged longs has been forced out of the market, with margin calls and auto-deleveraging accelerating the downside once key support levels failed.

While such events are painful in the short term, they also tend to cleanse excess leverage from the system, leaving a lighter positioning backdrop where spot flows and fresh capital, rather than crowded derivatives exposure, can play a larger role in setting the next directional move.

 

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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