Cryptocurrency markets remained under pressure on Monday as investors reacted to renewed geopolitical instability following fresh exchanges of strikes between Israel and Iran. The risk-off environment weighed heavily on major digital assets, with Bitcoin, Ethereum, and XRP all struggling to recover from recent declines.
Middle East tensions trigger risk-off sentiment
Market sentiment weakened after Israel and Iran reportedly exchanged military strikes for the first time since a ceasefire agreement reached in early April. Iran launched missile strikes toward Israel in response to earlier Israeli operations in Lebanon, while Israeli forces said they intercepted incoming attacks and carried out retaliatory strikes on targets in Iran.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for strikes on Israeli air bases, stating it remains prepared for broader escalation. Despite rising tensions, U.S. President Donald Trump indicated that the developments would not derail ongoing diplomatic efforts, expressing continued support for a potential peace agreement.
The escalation has intensified global uncertainty, pushing investors away from risk assets, including cryptocurrencies.
ETF outflows deepen pressure on crypto markets
Beyond geopolitics, persistent institutional outflows added further strain to the market. Spot Bitcoin ETFs recorded approximately $1.72 billion in net outflows last week, signaling reduced institutional demand.
Ethereum ETFs also extended their negative streak, posting $168 million in weekly outflows, with total assets under management declining significantly. Meanwhile, XRP-related investment products showed relative resilience, registering $2.62 million in inflows for the week, marking a fifth consecutive week of positive flows.
Despite these inflows, sentiment around XRP remained weak as price volatility persisted.
Market performance: Bitcoin struggles near $63K
Bitcoin was trading around $63,100, maintaining a bearish short-term structure. The asset remains below key moving averages, including the 50-day, 100-day, and 200-day EMAs, reinforcing downside pressure.
Technical indicators show weak momentum, with the Relative Strength Index (RSI) deeply oversold near 26 and the MACD histogram remaining negative. Immediate resistance sits near $68,400, with stronger barriers at higher moving averages up to nearly $79,600. Until Bitcoin reclaims these levels, rallies are expected to face selling pressure.
Ethereum remains capped below major resistance levels
Ethereum traded near $1,666, continuing to hover well below key resistance zones. The 50-day, 100-day, and 200-day EMAs remain significantly above current price levels, reinforcing a sustained bearish structure.
Although RSI readings near 27 suggest oversold conditions, momentum indicators continue to favor sellers. Resistance begins at $1,850, followed by layered EMA barriers extending up to $2,430. Any recovery attempt is likely to face strong resistance unless broader market sentiment improves.
XRP holds weak structure despite minor inflows
XRP was trading near $1.14 after briefly dipping to $1.05 over the weekend. Despite modest ETF inflows, the broader trend remains bearish, with price stuck below major moving averages ranging from $1.33 to $1.63.
Technical signals show oversold conditions but no confirmed reversal, as MACD remains negative and selling pressure persists. Immediate resistance is seen at $1.26, while downside risk remains toward the psychological $1.00 level if weakness continues.
Outlook
Overall, crypto markets remain under pressure from a combination of geopolitical uncertainty and sustained institutional outflows. While oversold technical conditions suggest the possibility of short-term rebounds, the broader trend for Bitcoin, Ethereum, and XRP remains fragile unless macro sentiment and capital inflows improve significantly.
