Ethereum fell below $2,600 on Oct. 7 as Strait of Hormuz tensions triggered a broad crypto sell-off, pushing the token toward its $2,500-$2,560 support zone. Separately, Bitmine Immersion Technologies says it will stop buying Ethereum once its holdings hit 5% of circulating supply, removing a buyer that has purchased ETH every week since June 2025.
Ethereum traded around $2,565 on Oct. 7, down roughly 5% after falling from an intraday high near $2,700. The decline extended Ethereum's weakness after the token struggled to sustain its recent move toward $2,800.
Oil tanker attacks trigger risk-off selling
The sell-off coincided with a sharp reversal across the broader crypto market. Bitcoin dropped from roughly $86,600 to a low near $83,060 on Oct. 7, including a decline of about $2,000 within 30 minutes.
Reports of escalating attacks involving oil tankers around the Strait of Hormuz drove the move, raising concerns over disruption to a key global energy route. The risk-off move also sent Brent crude toward $101.50 per barrel, while the U.S. 10-year Treasury yield climbed to around 5.31%.
Leverage added to the speed of the decline. More than $400 million in leveraged long positions were liquidated during the Oct. 7 market flush, according to market data, forcing additional selling as prices moved lower.
Ethereum tests its $2,500-$2,560 support zone
Ethereum's daily chart shows the token falling below its 20-day moving average at $2,684 after failing to extend September's rally beyond the $2,800 area. The 50-day average sits around $2,565, while the 100-day and 200-day averages stand near $2,199 and $2,128, almost directly at the current price.
Momentum has also deteriorated. The daily RSI has fallen to 44.55, below the neutral 50 level and down from a recent reading around 61. The 4-hour chart shows ETH trading below its lower Bollinger Band near $2,589, with the upper band near $2,780.
Crypto trader Merlijn The Trader identified the pullback as a retest of Ethereum's earlier triangle breakout, saying: "Hold $2,500–$2,560 and $3,000 is next." Analyst Ted Pillows separately noted that ETH is approaching its 100-week exponential moving average, adding that a weekly close below it could result in a deeper correction.
Bitmine's steady Ethereum buying nears its end
Bitmine Immersion Technologies chairman Tom Lee said at the Token2049 conference in Singapore that the company will stop buying Ethereum once its holdings reach 5% of the token's circulating supply, according to Decrypt. Bitmine holds 6,016,414 ETH, or about 4.9% of supply, and is roughly 100,000 ETH away from that threshold.
At last week's pace, that implies six to seven more weeks of accumulation before Bitmine halts purchases it has made every week since launching its treasury strategy in June 2025. The firm's holdings carry roughly $4.5 billion in unrealized losses, accumulated largely at higher prices during the bull market.
According to Decrypt, Bitmine's weekly purchases have been a persistent source of demand, and their end removes a buyer that has absorbed a steady stream of ETH for more than a year.
Sources: crypto.news, Decrypt
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