Ethereum News Today: Ethereum Crumbles as Trump's Tariffs Ignite Global Trade War Fears

Ethereum (ETH) experienced a 6.7% decline to approximately $3,510 following a sharp market selloff triggered by U.S.-China trade tensions and macroeconomic pressures. The crash, which erased nearly $20 billion in market value within 24 hours, saw over 1.6 million traders liquidated, with ETH accounting for $235 million in long-position liquidations Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1]. The downturn was fueled by President Donald Trump's announcement of a 100% tariff increase on Chinese goods, compounding existing fears of a global trade war and prompting a "risk-off" market sentiment ETH Price Prediction: Targeting $5,200-$5,500 by October 2025 as Technical Breakout Looms^[6].

Technical analysis highlights ETH's breakdown below critical support levels, including the $4,100 threshold, with volume surging to 372,211 units-double the 24-hour average-as selling pressure intensified Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1]. On-chain metrics further underscored weakness: Ethereum's circulating supply increased by 76,488.71 ETH over a month due to declining user activity and a slowing burn rate, while spot ETF outflows reached $389 million in October, signaling waning institutional confidence How Far Will ETH Price Fall From $4,000 in October 2025?^[2]. The On-Balance Volume (OBV) indicator also trended downward since mid-September, reflecting deteriorating spot demand How Far Will ETH Price Fall From $4,000 in October 2025?^[2].

Market dynamics were exacerbated by leveraged positions. Coinglass data revealed $500 million in liquidations within an hour, with ETH dominating the losses. The broader crypto market cap fell to $4 trillion, erasing $150 billion in value as investors rushed to unwind long positions . Ethereum's performance contrasted with Bitcoin's 3.5% decline, though both faced pressure from a strengthening U.S. dollar and elevated macroeconomic uncertainty Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1].

Despite the volatility, Ethereum exhibited signs of resilience. Price rebounded above $3,800 after testing the 200-day exponential moving average (EMA), a key technical support level . Analysts at Fundstrat noted that ETH's RSI (35) approached oversold territory, suggesting potential for a short-term bounce. However, risks remain: record Ethereum exchange inflows (79 on CryptoQuant) and $10 billion in staking withdrawals (Nansen) could prolong selling pressure .

Looking ahead, projections for ETH's recovery vary. Fundstrat anticipates a potential rally to $5,550 if the 200-day EMA holds, while others cite $5,200-$5,500 as a medium-term target based on bullish momentum and resistance levels . Conversely, a breakdown below $3,300 could trigger deeper corrections, aligning with historical patterns during trade conflicts .

Market participants are closely monitoring U.S.-China trade talks in London, with outcomes expected to influence crypto prices. Clearer trade relations could stabilize markets, while further escalations risk renewed selloffs Ethereum Holds 200-Day EMA – Is A Breakout To $3,300 Imminent?^[7]. For now, Ethereum's path hinges on balancing short-term technical indicators with macroeconomic developments.