Ethereum price retraced some of its gains from Monday after U.S. President Donald Trump brushed off an Iranian proposal to end the war and warned that strikes would target key infrastructure if Tehran fails to reopen the Strait of Hormuz by the deadline.

According to data from crypto.news, Ethereum (ETH) price fell 3.4% below the $2,100 support after reports emerged that Trump will not call off the strikes at Iranian infrastructure unless Tehran commits to reopening the Strait of Hormuz, a key maritime corridor that handles 20% of all the global oil trade. This came after the U.S. President dismissed a proposal from the Iranian leadership to end the war while keeping the Strait closed.

Fears of a very aggressive strike on Iran are likely causing investors to withdraw capital as they await the conclusion of this geopolitical standoff. Investors are withdrawing from both crypto and traditionally safe-haven assets such as gold and silver, a sign of broader derisking across global markets as uncertainty intensifies.

Asian tech stocks such as Japan’s Nikkei 225, Hong Kong’s Hang Seng, and the Shanghai Composite all remained either still or dropped as uncertainty weighed on the region.

Besides these factors lowering risk sentiment, retail investors are also likely panicking as they potentially face liquidation of $1.41 billion worth of long positions being erased from the market should Ethereum price slide further down to $2,040.

Ethereum price analysis

On the daily chart, Ethereum price has been forming a double top pattern on the 4-hour chart. Double top patterns are some of the most common bearish signals in technical analysis. The neckline of the pattern lies at around $2,017.

If Ethereum price falls below the $2,000 support, it would confirm the double top pattern and will continue to drop lower to under $1,900 as calculated by subtracting the height of the double tops formed from the point at which the neckline stands.

Technical indicators show that bears are starting to take control. Notably, the Aroon Up and Down lines have pointed sharply downwards, suggesting a strong downtrend. The MACD lines are close to forming a bearish crossover, a sign that selling pressure is mounting.

For now, the immediate support level that decides the trend lies at $2,000. Failure to hold this level would confirm both the double top pattern and the long liquidation cascade.