Ethereum News Today: Ethereum's $3,510 Rally: Rebound or Relapse After $20B Liquidations?

Ethereum's price faced significant volatility in October 2025 amid historic liquidation events, with Ether (ETH) dropping to roughly $3,510 before rebounding above $3,800. The crash, triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, led to nearly $20 billion in crypto market liquidations within 24 hours, with Ethereum accounting for a substantial portion. Key factors influencing the price action included record exchange inflows, elevated staking withdrawals, and macroeconomic pressures from trade war fears and a U.S. government shutdown.

The liquidation event saw nearly 1.6 million traders impacted, with Ethereum tapping the 200-day exponential moving average (EMA) before recovering. On-chain data from CryptoQuant showed Ethereum's exchange inflow mean reaching a 2025 high of 79, signaling potential selling pressure as coins moved to exchanges. Meanwhile, Nansen reported $10 billion in Ethereum staking queue withdrawals, further amplifying near-term supply risks. Despite these challenges, Ethereum's relative strength index (RSI) approached oversold levels (≈35), suggesting potential for a short-term rebound.

Analysts at Fundstrat projected Ethereum could reach a new all-time high near $5,550 following a capitulation and recovery phase. However, the path to $5,500 remains constrained by elevated exchange inflows and staking withdrawals, which could sustain sell pressure until inflows subside. Technical indicators, including the 200-day EMA and RSI, remain critical for monitoring the asset's resilience.

The crash highlighted broader market dynamics, with Bitcoin and Ethereum outperforming many altcoins that lost 70–95% of their value. Investors noted a flight to liquidity, with Ether's 6.7% 24-hour decline deemed relatively resilient compared to the long tail of altcoins. Institutional adoption and Ethereum ETF inflows, including Grayscale's staking services, continue to drive demand, though macroeconomic uncertainties persist.