Ethereum News Today: Ethereum Defies Crypto Crash as Altcoins Plummet in Trump-Driven Sell-Off

Ethereum (ETH) fell 6.7% in 24 hours following the crypto market's "Black Monday" crash, though it demonstrated greater resilience compared to altcoins such as XRP and Solana (SOL), which plummeted 17–30%. The sell-off, triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, wiped $500 billion from the crypto market and saw over $9.5 billion in liquidations across major exchanges The Market Periodical^[7]. ETH traded at $3,896.53 at press time, down from a low of $3,510 after tapping the 200-day exponential moving average (EMA) for support Coinotag^[10].

Bitcoin dominance dropped below 60% for the first time in six months, signaling a shift in institutional liquidity toward altcoins. ETH ETFs outperformed Bitcoin in inflows, with net positive flows of $174.3 million since August, contrasting with Bitcoin's $559.1 million outflows The Coin Republic^[1]. This trend suggests growing institutional confidence in Ethereum, which is currently 15% away from retesting its all-time high.

Short liquidations for ETH surged to $202 million, driven by a resistance breakout above $4,100. However, analysts noted bearish divergence in the RSI, with the indicator remaining below July levels despite price gains. This divergence raises concerns about a potential pullback, though the extent will depend on sustained demand and profit-taking behavior The Coin Republic^[1].

Whale activity further complicated the outlook. Over $199 million in ETH spot sell orders were executed in 48 hours, with OKX alone recording $32.6 million in sell pressure. Derivatives markets saw over $6.1 billion in net sell orders, indicating whales may be positioning for short-term gains The Coin Republic^[1]. Meanwhile, rising funding rates over seven days signaled heightened risk appetite among longs, though a major correction could trigger a "long squeeze" The Coin Republic^[1].

ETH's technical resilience contrasted sharply with smaller altcoins. While Ethereum recovered to $3,800 after the crash, tokens like XRP, Dogecoin (DOGE), and Cardano (ADA) lost 19–40% Coindesk^[5]. Coinglass data highlighted that ETH accounted for $1.68 billion of the $9.6 billion in liquidated positions, underscoring its role as a relative safe haven in a volatile market Yahoo Finance^[9].

Fundamental factors also pointed to mixed outcomes. Ethereum's circulating supply increased as user activity waned, reducing the burn rate and adding downside pressure. ETF outflows of $389 million in October signaled waning institutional interest, while declining on-balance volume (OBV) metrics suggested weak spot demand BeInCrypto^[3].

Analysts remain divided on ETH's near-term trajectory. While the RSI near 35 indicates oversold conditions that could precede a rebound, record exchange inflows and $10 billion in staking withdrawals pose selling risks Coinotag^[10]. Fundstrat analysts project ETH could reach $5,550 post-recovery, but elevated exchange inflows and macroeconomic uncertainties may delay this outcome Coinotag^[10].

The crash highlighted the fragility of leveraged positions, with over 1.6 million traders liquidated in 24 hours. Ethereum's performance, however, underscored its structural advantage over smaller altcoins, which face steeper liquidity challenges. As markets digest Trump's tariff policy and global trade tensions, ETH's ability to stabilize above $4,000 will be critical for sustaining bullish momentum.