Ethereum Drops 5.5% Amid Geopolitical Tensions and Rising Treasury Yields

Ethereum (ETH) has been facing downward pressure in recent days, dropping to $2,356 during intraday trading on September 2. This marks a 5.5% decline from its previous peak around $2,510.

The downturn coincided with escalating geopolitical tensions between the US and Iran, which sent Brent crude oil prices approaching $95 per barrel. The benchmark US 10-year Treasury yield also surged past 4.8%, reaching levels not seen in nearly three years.

Despite this challenging environment, large investors appear to be accumulating ETH. Two previously dormant whale addresses withdrew $126.25 million worth of tokens from FalconX and BitGo, sparking market speculation about potential institutional investment.

Market analyst Ted Pillows warned that failure to maintain the 50-week exponential moving average could trigger a decline to $2,200, while holding this level could enable a rally to $2,500-$2,550.