Ethereum News Today: Investors Flee to Treasuries as Ether Crashes 20% on Tariff Fears

Ether prices plunged 20% to $3,500 on October 10, 2025, as renewed U.S.-China tariff threats triggered a broad sell-off in risk assets. The world's second-largest cryptocurrency by market capitalization, according to Coinbase data from TradingView, fell sharply after reaching an intraday high of nearly $4,400 earlier in the day. The decline coincided with a 2.7% drop in the S&P 500 and a 1.9% slide in the Dow Jones Industrial Average, while gold prices rose over 1% as investors sought safe-haven assets.

Analysts attributed the selloff to U.S. President Donald Trump's announcement of a 100% tariff on Chinese goods starting November 1, escalating trade tensions. Trump also stated he would not meet with Chinese President Xi Jinping at the APEC 2025 summit, further stoking market fears. Greg Magadini of Amberdata noted the "flight to quality" in USD and Treasuries, emphasizing that renewed tariff concerns pressured crypto and equities. Tim Enneking of Psalion highlighted the tight correlation between crypto and traditional markets, stating that ETH and the S&P 500 moved in lockstep following Trump's remarks.

The liquidation of leveraged positions exacerbated the downturn. CoinGlass data revealed over $700 million in crypto liquidations, with Ethereum longs accounting for $235 million in losses. Joe DiPasquale of BitBull Capital linked the drop to technical resistance near $4,400 and macroeconomic factors, including a stronger U.S. dollar and a high-profile short call on a crypto-treasury firm. Jonathan Morgan of Stocktwits pointed to the rapid liquidation of leveraged ETH positions as a primary driver of the decline.

The sell-off extended beyond Ethereum. Bitcoin fell below $110,000 for the first time since January 2025, while altcoins like XRP, Solana, and Dogecoin dropped 20%-30%. Coindesk reported that over $600 million in leveraged crypto positions were wiped out, with Ethereum leading the losses. Analysts at Split Capital described the altcoin complex as "eviscerated," with prices reaching levels not seen in over a year.

Market participants remain divided on the long-term outlook. While some, like Markus Thielen of 10X Research, see potential for Bitcoin to rebound above $140,000 if tariffs weaken the dollar, others warn of immediate inflationary pressures. On-chain metrics, including Glassnode's Net Unrealized Profit/Loss (NUPL) indicator, suggest capitulation among ETH holders, mirroring patterns from previous market cycles.