Ethereum News Today: Crypto's "Cursed" October: Leverage Fuels $19B in Trader Losses

The cryptocurrency market's October 2025 rout, dubbed "the most cursed month in crypto," saw a 25x leveraged Ethereum long position liquidated for a $15 million loss, underscoring the carnage from a record $19.37 billion in wiped-out positions across 1.6 million traders. The collapse, triggered by a surprise 100% tariff announcement on Chinese imports by Donald Trump, erased nearly a decade of bullish seasonality and exposed the fragility of leveraged trading in volatile markets, according to a Yahoo Finance report.

Ethereum (ETH) fell 20% to under $4,000 during the crash, while Bitcoin (BTC) plummeted 18% from its September peak of $126,000 to a low of $104,782. Altcoins like Solana and Dogecoin suffered 60–80% declines as liquidity evaporated. The liquidation wave was exacerbated by institutional redemptions and a surge in panic selling, accelerating a $370 billion market cap contraction. CoinGlass data revealed $7 billion in losses within the first hour alone, resetting open interest to early-2025 levels, as reported by Yahoo Finance.

Amid the turmoil, Ethereum's stablecoin ecosystem hit an all-time high in October, with $2.82 trillion in monthly transaction volume driven by USDC ($1.62 trillion) and USDT ($895.5 billion). Traders flocked to stable assets as a refuge, while decentralized exchanges (DEXs) saw a 23% jump in volume to $613.3 billion. Uniswap dominated with $170.9 billion in trades, reflecting a growing preference for decentralized platforms despite a 24% drop in Ethereum's daily active addresses, according to a Yahoo Finance analysis.

Ethereum's price stabilized around $3,700 by month-end, down 17% from October highs, as $600 million in outflows from centralized exchanges signaled a shift to long-term storage. Analysts noted the Clarity Act's pending regulatory outcome could sway short-term sentiment, with potential passage offering a lifeline to Ethereum's fundamentals, according to a TradingView note. Meanwhile, the Crypto Fear & Greed Index remained in "Extreme Fear" territory, highlighting lingering uncertainty.

The crash exposed systemic risks in leveraged trading, with over-leveraged positions-like the 25x Ethereum bet-bearing the brunt of the selloff. As markets limped into November, the industry grappled with lessons from a month that redefined risk management in crypto's volatile landscape.