Ether hovers around $2k as Middle East crisis drags on

The cryptocurrency market is having a positive start to the week as Bitcoin surges past $68,000, while Ether trades around $2,000.

However, the ongoing crisis in the Middle East continues to affect prices.

Ether hit the $2,200 mark on Wednesday but is down by roughly 10% since then.

The rising crude oil price is affecting cryptocurrencies and equities, as rising energy costs could push up inflation and reduce the chances of a rate hike in the near term.

ETH stays below $2k as oil price spikes above $110

Ether is up by 1% in the last 24 hours and now trades around $2,000 per coin.

However, the market continues to remain volatile due to the ongoing crisis in the Middle East. 

The 10% pullback from last week’s rally aligns with CryptoQuant's previous analysis that last week's price action was more of a "relief rally" than a start of a new bull cycle.

While commenting on the current market conditions, Dominick John, analyst at Zeus Research, stated that:

"Elevated geopolitical risk, particularly the lack of de-escalation in the Middle East, pushed markets into a more risk-off posture, while rising oil prices are adding to inflation concerns and tightening global financial conditions."

Oil rallied by 25% during the Asian trading session, hitting the $115 mark. 

Jeff Mei, COO at BTSE, pointed out that the rising price of oil is a major factor in driving up inflation and could drag down global economic growth, given that it is used as an input for so many products across different industries.

However, the analyst added that crypto prices are more resilient than in past bear markets, and this could be because of the larger makeup of institutional holders this time around.

Ethereum’s selling pressure remains

The ETH/USD 4-hour chart remains bearish as Ether is up by 1% today.

At press time, Ether is trading at $1,998 per coin. 

The short-term bias remains mildly bearish as price holds well below the 50 and 100-day EMAs. 

The RSI on the 4-hour chart at 51 is approaching the neutral 50 line, indicating subdued bullish momentum after the late-February rebound faded. 

The MACD lines are also diverging into the negative zone, hinting at easing upside pressure within an overall corrective structure.

Currently, Ether is facing immediate resistance around $2,027–$2,050, with the major resistance at $2,148.

A daily candle close above this resistance level could allow the bulls to push higher, targeting the $2,380 region. 

However, if the recovery fails and the bears grow stronger, ETH could retest the $1,856 support level.

An extended bearish trend would see the leading altcoin fall to $1,750 in the medium term. 

A breakdown through that zone would signal trend deterioration, allowing the bears to take another leg down towards the $1,500 psychological level.

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