Amid global turmoil and nearly $19 billion in liquidations, Ethereum dropped to $3,510 but is currently holding a key support level.
Ethereum Under Pressure After Market Panic
Ethereum’s price experienced a sharp decline as panic swept through global markets. ETH/USD plunged from nearly $4,300 to $3,510 before partially recovering to $3,830. The drop came during one of the most volatile days of 2025, driven by $19 billion in crypto liquidations.
Even traditionally resilient institutions reacted — BlackRock’s ETHA ETF saw an $80.2 million outflow, echoing other crypto-exposed funds.
Overall market sentiment turned risk-off as geopolitical uncertainty intensified pressure across all risk assets — Bitcoin, Solana, and other major tokens also posted double-digit losses.
Tariff Shock Triggers Sell-Off
The main driver behind the drop wasn’t Ethereum’s fundamentals but political developments. Late Friday, President Donald Trump announced a 100% tariff on Chinese imports, effective November 1. In a Truth Social post, Trump hinted the measure could take effect even earlier depending on China’s response.
Rumors circulated that Trump would not meet with President Xi Jinping during the APEC summit in South Korea (October 29–31, 2025), but he later personally denied them.
Nonetheless, the tariff announcement rattled both traditional and digital markets, sparking a wave of sell-offs.
Global indices reacted immediately:
- S&P 500 fell by 2.71%
- Dow Jones dropped 1.90%
- Gold — seen as a safe-haven asset — rose 1.02% to $4,016 per ounce
Technical Picture: Bearish Short-Term Pressure, but Solid Long-Term Outlook
From a technical perspective, Ethereum’s chart shows a temporarily disrupted uptrend. A bearish crossover between the 20-day and 50-day Exponential Moving Averages (EMA) indicates increased short-term tension.
However, the 200-day EMA — a key long-term indicator — remains intact, helping prevent a deeper breakdown for now.
- If the $3,500 support and 200-day EMA hold, ETH may recover toward $3,900–$4,100.
- If the support breaks, analysts see potential declines toward $3,100 or even $2,600.
Long-Term Investors Remain Cautiously Optimistic
Despite short-term volatility, Ethereum continues to exhibit strong fundamentals:
- active on-chain activity
- a growing developer community
- resilient participation in staking
These factors could support a gradual recovery once geopolitical pressures subside.
Critical Juncture: ETH in a Key Zone
Traders are closely watching whether ETH can stay above $3,500. If it does, institutional accumulation could resume and potentially ignite a new bullish impulse.
Ethereum currently stands at a crossroads — whether the current correction turns into a rebound or evolves into a deeper downtrend will depend on the coming days and global market behavior.
Frequently Asked Questions
Find answers to the most common questions below.
The decline was driven by a wave of crypto liquidations and global risk-off sentiment after Trump announced new tariffs on Chinese imports.
Analysts warn that a break below $3,500 could trigger further declines to $3,100 or even $2,600, based on technical indicators.
Yes. Despite short-term volatility, Ethereum maintains strong fundamentals like active on-chain use, developer activity, and staking participation.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
