Ethereum News Today: Trump's Tariff Ultimatum Triggers $200B Crypto Crash as Trade War Fears Escalate

Ethereum (ETH) plummeted below $4,000 on October 10, 2025, marking a 16% decline in 24 hours amid a broader crypto market selloff triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports. The move, coupled with export controls on critical software, exacerbated fears of a renewed U.S.-China trade war, sending shockwaves through global markets Bitcoin Crashes Below $110K, Crypto Market Meltdown^[1]. The total crypto market capitalization fell from $4.25 trillion to $4.05 trillion within hours, erasing nearly $200 billion in value Trump Crashes Crypto Markets With 100% Tariff on China^[3].

Bitcoin (BTC), the largest cryptocurrency by market cap, dropped 10% to $107,000 from a peak above $122,000, while major altcoins like XRP, Solana (SOL), and Binance Coin (BNB) declined 15%-30% Trump Crashes Crypto Markets With 100% Tariff on China^[3]. Ethereum's collapse was particularly severe, breaching key support levels and triggering over $900 million in liquidations, according to Coinglass data. Over 210,000 traders were liquidated in 24 hours, with the largest single order-a $15.49 million ETH-USDT trade-occurring on Hyperliquid Why Ethereum, Bitcoin, and Altcoins Are Plummeting^[5].

The selloff followed a pattern of leveraged positions collapsing as funding rates turned negative, amplifying downward momentum Bitcoin’s Worst Crash of 2025^[4]. Binance and Coinbase, two of the largest exchanges, reported system strain and latency during the crash, though both assured users that funds remained secure Trump’s China Tariff Sends Exchanges into Emergency Mode^[2]. Traditional markets mirrored the turmoil, with the S&P 500 and Nasdaq down 1.6% and 1.3%, respectively, while gold surged 1% as investors flocked to safe-haven assets Trump Tariff Threat Sends Bitcoin Tumbling^[6].

Analysts attributed the crash to a confluence of factors. Ram Ahluwalia of Lumida Wealth noted that "overbought conditions" combined with Trump's tariff threat created a "sharp decline." Zaheer Ebtikar of Split Capital described the altcoin complex as "eviscerated," with Ethereum trading at levels not seen in over a year Bitcoin Crashes Below $110K, Crypto Market Meltdown^[1]. Prominent trader Bob Loukas likened the crash to the March 2020 pandemic-induced sell-off, calling it a "leverage reset" Bitcoin Crashes Below $110K, Crypto Market Meltdown^[1].

The geopolitical tensions escalated further as Trump canceled a planned meeting with Chinese President Xi Jinping and framed Beijing's rare earth export controls as a "hostile" move. The U.S. Treasury yield and dollar index (DXY) also reacted, with the 10-year yield dipping to 4.071% and the DXY falling 0.63% post-announcement Why Ethereum, Bitcoin, and Altcoins Are Plummeting^[5]. On-chain data revealed that long-term holders and whales accelerated profit-taking to avoid liquidations, with some losing millions as positions were wiped out Why Ethereum, Bitcoin, and Altcoins Are Plummeting^[5].

Market participants remain cautious ahead of November 1, when the tariffs and export controls are set to take effect. Experts predict further volatility, with Ethereum potentially testing the $3,000 level and Bitcoin facing critical support near $100,000. The path forward hinges on whether China retaliates or seeks diplomatic resolution, though current sentiment leans toward a prolonged period of uncertainty.