Ethereum Dips 3.44% Amid Global Selloff Triggered by Trump Tariffs and Geopolitical Tensions

Ethereum's latest price was $3748.75, down 3.444% in the last 24 hours. The cryptocurrency has experienced a significant downturn in recent days, driven by a broader market selloff linked to heightened geopolitical tensions and regulatory pressures. The volatility was exacerbated by President Donald Trump's announcement of 100% tariffs on Chinese technology imports, effective from November 1st, 2025. This move triggered a wave of risk-off behavior across global markets, including the cryptocurrency sector, leading to over $19 billion in crypto assets being liquidated in a 24-hour period. Ethereum, like many other cryptocurrencies, saw sharp price declines but has shown signs of stabilization near key support levels.

Despite the downward pressure, Ethereum's price has held relatively well compared to other major assets, stabilizing near the $3,825 level. Analysts have emphasized the importance of maintaining this support level to ensure a potential recovery in the near term. The selloff was largely attributed to macroeconomic factors such as rising interest rates, rather than internal issues within the crypto market. This suggests the downturn was a global macroeconomic spill-over, rather than a structural failure within the Ethereum network itself.

The volatility has also had a noticeable impact on the Ethereum-based decentralized finance (DeFi) ecosystem. Data from DeFiLlama showed a 11% decline in total value locked (TVL) within 24 hours, dropping to $147 billion. This drop was partially offset by a 24% weekly increase in activity within perpetual futures trading, indicating continued interest in Ethereum's derivatives markets. While leveraged positions were unwound by both retail and institutional investors, Ethereum’s dominance in the DeFi space remains strong, as evidenced by the ongoing adoption of Ethereum-based smart contracts and decentralized applications.

A notable incident during the selloff was the brief depegging of the stablecoin Ethena USDE from the U.S. dollar. Although the stablecoin later recovered to nearly $0.99, the event raised concerns about the stability of algorithmic or partially collateralized stablecoins during extreme market conditions. This highlighted the fragility of certain crypto financial systems and reinforced Ethereum's role as a foundational layer for trustless, decentralized applications. The contrast between Ethereum's resilient infrastructure and the vulnerabilities in some stablecoin models has sparked renewed discussions about the long-term sustainability of decentralized finance.

In response to the growing challenges in the market, the Ethereum community has shown resilience and a focus on long-term growth. Online discussions and forums have emphasized Ethereum’s ability to weather market stress as a test of its DeFi infrastructure. Many observers have drawn parallels to previous market corrections and expressed confidence that Ethereum would recover from the current dip. Some investors see the current environment as an opportunity to enter the market with a long-term perspective, rather than engaging in short-term speculation.

Beyond market dynamics, Ethereum continues to evolve through its ongoing upgrades and development efforts. Institutional and whale activity on the network has remained robust, with on-chain data indicating continued accumulation of Ethereum despite short-term volatility. This suggests that long-term investors and large holders still believe in Ethereum’s future potential. The Ethereum Foundation and key stakeholders remain focused on improving the network’s scalability, security, and sustainability, particularly with the transition to a proof-of-stake consensus model.

At the same time, the Ethereum Foundation and the Keyring Network have taken a proactive role in supporting the legal defense of Tornado Cash developers Roman Storm and Alexey Pertsev. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has designated the developers for sanctions violations, prompting the Ethereum community to rally around them. The Ethereum Foundation and Keyring Network have pledged to donate protocol fees generated by the Keyring zkVerified vault for the first two months to the legal defense fund. This initiative reflects a broader commitment to protecting privacy-preserving technologies and the rights of developers who build on the Ethereum platform.

The legal battle involving Tornado Cash has sparked a wider debate within the Ethereum community about the balance between privacy and regulation. Critics argue that the OFAC designation sets a dangerous precedent for the regulation of decentralized technologies and could stifle innovation in the privacy space. Supporters of the legal defense fund view it as a necessary step to ensure that developers can operate without fear of government reprisal. The outcome of this case could have long-term implications for the Ethereum ecosystem, particularly in how privacy tools are regulated and integrated into the broader financial system.

As Ethereum continues to adapt to both internal and external challenges, its role as a foundational platform for decentralized applications remains strong. The ongoing development of Ethereum-based projects and the expansion of its ecosystem contribute to its growing importance in the global digital economy. With increasing institutional interest and a focus on innovation, Ethereum is well-positioned to maintain its leadership in the decentralized finance space, despite the current market uncertainties.