Ethereum News Today: Crypto's $19B Liquidation: Cycle Bottom or Deeper Crash Ahead?

The cryptocurrency market experienced an abrupt shift from "Greed" to "Fear" within 24 hours following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering one of the largest liquidation events in crypto history. The Crypto Fear & Greed Index, a key sentiment indicator, plummeted from 64 to 27 in a single day, reflecting extreme market panic. Over $19.33 billion in leveraged positions were liquidated, affecting more than 1.66 million traders, according to data from CoinGlass. Bitcoin (BTC) and Ethereum (ETH) were among the hardest-hit assets, with Bitcoin losing $5.38 billion in liquidations and Ethereum suffering $4.43 billion in losses Coinglass^[1].

The sell-off accelerated after Trump's Truth Social post, which framed the tariffs as a response to China's export restrictions on rare earth minerals. Bitcoin's price dropped from above $122,000 to briefly below $102,000 within hours, erasing all gains since August and wiping nearly $1 trillion from the global crypto market cap in three hours. Ethereum and Solana also saw sharp declines, with Ethereum tumbling to $3,400 from $4,783 Cointelegraph^[2].

Analysts highlighted the event as a contrarian signal, noting that extreme fear often precedes buying opportunities. Andre Dragosch, Head of Research at Bitwise Europe, cited the firm's Intraday Sentiment Index, which reached -2.8 standard deviations-its lowest level since the 2024 "Yen Carry Trade Unwind." Historical comparisons to past market downturns, such as the March 2020 COVID-19 crash and the 2022 FTX collapse, underscored the severity of the liquidation event Alternative.me^[3].

Technical analysis pointed to critical support levels for Bitcoin and Ethereum. Bitcoin's price rebounded to around $111,522 after testing the $102,000 level, with $113,500 identified as a key threshold for a potential relief rally. Ethereum, trading at $3,833, faced immediate resistance at $4,000. Both assets remain under pressure as unresolved tariff uncertainties and macroeconomic risks loom X/@wacy_time1^[4].

The liquidation event also exposed vulnerabilities in leveraged positions, with long positions accounting for $16.83 billion in losses compared to $2.49 billion in short positions. Hyperliquid, a major exchange, recorded the largest single liquidation of an ETH-USDT position worth $203.36 million, while Binance, Bybit, and OKX collectively handled over $10.3 billion in liquidations Hyperliquid^[5].

Market participants remain divided on whether the crash marks a cycle bottom or further declines. Some analysts, including Bitwise's Dragosch and Santiment's Brian Quinlivan, emphasized the potential for a rebound, citing historical October trends where Bitcoin has averaged 20.10% gains. However, ongoing policy risks, such as Trump's planned November 1 tariff implementation, could prolong volatility CoinGlass^[6].