Ethereum (ETH) faced renewed downside over the weekend following a US airstrike on Iranian nuclear facilities. The geopolitical tension rattled crypto markets, which pushed ETH briefly below the $2,200 mark.
Although prices have since rebounded, the crypto asset has lost almost 15% over the past week, amid broader market unease as conflict escalates in the Middle East.
New data suggest that Ethereum’s recent price drop may not be over.
According to Matrixport’s latest update, Ethereum remains vulnerable to further losses due to risky futures positioning, which suggests further downside risk for the world’s largest altcoin. While Bitcoin attempted to rally, Ethereum’s gains were largely fueled by leveraged traders rather than fundamental strength.
This disconnect has made the asset especially vulnerable, with elevated leverage amplifying recent losses.
Matrixport analyst Markus Theilen warned that the futures market continues to show signs of overcrowding, which essentially indicates that the unwinding process is not yet complete. The sharp decline over the past few days is likely a result of this positioning risk, and until leverage resets, Ethereum could face continued selling pressure in the near term.
While leverage and macro risk weigh on ETH’s near-term outlook, its relative dominance on Binance has quietly strengthened.
Ethereum’s growing dominance on Binance is largely a result of declining interest and trading volume in other altcoins, rather than a surge in ETH trading itself. An analysis of Binance trading data from January 2023 to May 2025 shows that the altcoin’s trading volume has remained relatively stable, ranging between 300 trillion and 490 trillion.
On the other hand, altcoin volume, which peaked in November 2024, dropped sharply by May 2025. This significant decline reflects a broader shift in investor sentiment.
Traders appear to be pulling liquidity from smaller or riskier assets, particularly during periods of market uncertainty or when confidence in speculative projects declines. Some of this capital may be reallocating to Ethereum, which is viewed as a more reliable asset.
In cautious market environments, the asset tends to retain its trading volume better than other assets. This trend highlights how ETH can benefit from risk-off behavior in the broader crypto market.