Ethereum Tumbles 3.4% Amid Macro Shifts and Leverage Flush

Ethereum's price dropped by 3.4% due to a broad macro-driven risk-off move, exacerbated by leveraged liquidations and profit-taking after a sharp rally.

The decline is not specific to Ethereum, but rather a global reaction to higher yields and rate-hike odds, reinforced by strong business activity data and geopolitical tensions.

Iran's UN speech added another risk premium, contributing to the pullback in crypto markets, with ETH tracking the broader crypto sell-off.

The drop was also influenced by leverage mechanics, which turned a modest dip into a cleaner 3-4% move. Long liquidations forced selling, amplifying the downside, and ETH was one of the largest contributors to these liquidations during this correction.