Ethereum News Today: Trade Truce Fuels Ethereum's Post-$20B Liquidation Surge as Markets Stabilize

The cryptocurrency market is rebounding as Ethereum ($ETH) surges following a historic $20 billion liquidation event triggered by President Donald Trump's 100% tariff announcement on Chinese imports. The shockwave, which sent Bitcoin and altcoins into freefall, has now stabilized amid signs of easing trade tensions and renewed institutional interest.

The crisis began on October 10, 2025, when Trump announced via social media that tariffs on Chinese goods would escalate to 100% starting November 1. This revelation triggered an immediate sell-off, with Bitcoin plunging 10% in five days and Ethereum dropping 14.2% to $3,742.88. According to CoinGlass, over $18.28 billion in crypto positions were liquidated within 24 hours, marking the largest such event in history . Solana (SOL) and altcoins like XRP and Dogecoin saw even steeper declines, with some tokens losing 30% of their value in hours.

The collapse was exacerbated by a technical malfunction on Binance, the world's largest exchange, where stablecoins like USDe, BNSOL, and WBETH depegged from their intended values. USDe, designed to maintain a $1 peg, fell to $0.65, while WBETH and BNSOL dropped to $430.65 and $34.90, respectively . Binance attributed the depegging to internal oracle issues and announced compensation for affected users, though only those with specific collateral types qualify . Ethena, the issuer of USDe, defended its protocol, stating that the token's redemption system operated normally despite the volatility .

Amid the chaos, Ethereum emerged as a key beneficiary of post-crash recovery. Whale activity surged, with over $127 million in transactions boosting ETH's price by more than 10% in 24 hours. The rebound coincided with positive signals from U.S. Treasury Secretary Scott Bessent, who hinted at easing trade tensions between Washington and Beijing . Ethereum's on-chain metrics suggest a potential 10x rally in 2025 if macroeconomic conditions stabilize, though technical hurdles like the $2,500 resistance level remain .

The crisis has reignited debates over crypto market stability. Crypto.com CEO Kris Marszalek called for regulatory scrutiny of exchanges with high liquidation volumes, emphasizing the need for "market integrity" . Meanwhile, Binance CEO Richard Teng apologized for the incident, acknowledging the exchange's role in the turmoil . The event also exposed vulnerabilities in leveraged trading, with analysts noting that over $7 billion in long positions were wiped out, disproportionately affecting retail traders .

Looking ahead, the Federal Reserve's October policy decision looms as a critical catalyst. If the central bank signals rate cuts, it could reignite risk-on sentiment, benefiting Bitcoin and Ethereum. However, lingering trade tensions and security concerns-exemplified by the Hyperliquid hack-remain headwinds . For now, the market is cautiously optimistic, with Ethereum's recovery signaling resilience amid one of crypto's most volatile episodes.

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[2] This is the Full Title of the Second News Article (https://www.cnn.com/2025/10/11/business/trump-tariffs-crypto-selloff)

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[5] Full Title of the Fifth Source Used (https://bravenewcoin.com/insights/binance-announces-some-user-compensation-after-20-billion-market-crash)

[6] Full Title of the Sixth Source Used (https://www.theblock.co/post/374278/binance-to-compensate-some-users-after-several-markets-depeg-there-are-no-excuses)

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[10] Full Title of the Tenth Source Used (https://www.coindesk.com/markets/2025/10/12/friday-s-usd20b-crypto-market-meltdown-a-bitwise-portfolio-manager-s-postmortem-analysis)