<ul data-eligibleForWebStory="true"><li>Israel launched a surprise military strike on Iran, triggering a sharp market-wide sell-off and panic selling of major assets, including ETH.</li><li>Ethereum plunged below $2,600 support on Binance, leading to a liquidation cascade with heavy losses concentrated in the $2,650 to $2,430 range.</li><li>The price collapse through key support zones triggered stop-losses and liquidations, wiping out overextended leveraged positions in ETH.</li><li>Bitcoin derivatives markets saw a surge in short interest with deeply negative funding rates, reflecting a shift to bearish sentiment.</li><li>Traders could see a high-risk, high-reward entry opportunity, as extreme negative funding rates historically signal moments of excessive bearishness.</li><li>Forced liquidation of late ETH buyers might have flushed excess leverage, creating a potential base for recovery.</li><li>If selling pressure subsides and geopolitical tensions de-escalate, both BTC and ETH could stabilize or see a relief bounce.</li></ul>

Ethereum Plunges Below Key Support, But Could Flushed Leverage Fuel a Rebound?

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