ETH falls to $1,859 amid Israel–Iran conflict while Machi Big Brother is liquidated again and major holders reduce reserves.
A sharp rise in Middle East tensions pushed Ethereum into another deep pullback, and it triggered heavy liquidations across leveraged traders.
The market reaction intensified after reports confirmed new military actions involving the United States, Israel, and Iran.
Geopolitical Escalation Triggers Sharp Ethereum Pullback
Ethereum’s price fell as reports confirmed a coordinated military strike on Iran by Israel and the United States.
According to Reuters, Israel launched a pre-emptive operation aimed at removing perceived threats linked to Iran’s nuclear and missile programs.
The United States assisted in what President Donald Trump described as “major combat operations.”
The exchange rate for ETH reflected immediate market stress. The asset moved down roughly 9% in a single session, trading near $1,859 at press time.
During the past seven days, Ethereum lost about 6%, and it is down more than 37% over the past month.
Tension in the region intensified after reports stated that Iran’s Supreme Leader had been relocated from Tehran for security reasons.
Explosions were reported across the capital, and early-morning sirens sounded in Israel as authorities warned of possible incoming strikes.
Traders reacted quickly, causing increased volatility across crypto markets during the announcement window.
Machi Big Brother Hit With Repeated Liquidations
The market reversal added pressure to high-leverage traders, and Machi Big Brother was among those affected.
Data from Lookonchain showed that his Ethereum position was liquidated earlier in the day, reducing his account value to $91,000.
He later opened another 25x long position on 925 ETH, valued at approximately $1.78 million.
After Israel's strike on Iran, $ETH dropped sharply — and Machi(@machibigbrother) got liquidated again!
His account is now down to only $13,580.
He put in $245K just 4 days ago — and it’s already gone again.https://t.co/lwXUSKAqoa pic.twitter.com/5lA2hfbdKm
— Lookonchain (@lookonchain) February 28, 2026
His position set a liquidation price near $1,866, yet the rapid decline in the market triggered another forced closure.
After this event, his account dropped to roughly $13,000. This loss comes only four days after he allocated about $245,000 to Ethereum positions.
Lookonchain noted that the sequence of liquidations followed the sharp downturn tied to the latest Middle East developments.
The pace of price change left very little room for recovery before the positions were wiped out.
Related Reading: Ethereum Reclaims $2,000: Is a Surge to $2,400 Now Inevitable?
Large Ethereum Holders Continue Reducing Reserves
On-chain data also shows a pattern of distribution among major ETH holders.
Addresses with between 100,000 and 1 million ETH have reduced their reserves noticeably during the past 90 days.
Analysts reviewing the movements noted that most of this reduction did not come from exchange wallets.
🐳Whales continue to distribute and sell Ethereum.
Addresses holding between 100K and 1 million ETH have drastically reduced their reserves over the past 90 days. That is a significant and curious shift.
What stands out even more is that a large portion of this reduction is not… pic.twitter.com/UBlikDUQf3
— Joao Wedson (@joao_wedson) February 27, 2026
This trend indicates that large holders outside centralized platforms may be decreasing exposure.
The scale of the reduction suggests a shift in positioning among entities controlling sizable reserves.
Observers say such movements often reflect underlying structural changes within the market.
While Ethereum’s short-term direction remains uncertain, the market continues monitoring whale behavior and geopolitical developments, as both factors remain active drivers of volatility.
