Ethereum News Today: Trump Tariffs Spark ETH Volatility as $3,600 Support Tests Resilience

Ethereum's price has retreated below $3,600, triggering a negative funding rate for the first time since June 25, a development many traders interpret as a potential buy signal Cointelegraph^[1]. This shift follows heavy selling pressure amid U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, which exacerbated market volatility and sent Bitcoin and Ethereum into a sharp decline TheStreet^[8]. Despite the downturn, retail investors have absorbed much of the pain from long liquidations, while also stepping in to buy dips near critical support levels Cointelegraph^[1].

The liquidation heatmap data from Hyblock reveals that Ethereum's price tapped a long leverage liquidation zone at $3,600, with shorts remaining vulnerable near $3,900, where selling intensity has been highest Cointelegraph^[1]. Over $115.8 million in ETH longs were liquidated in five hours, contributing to the negative funding rate Cointelegraph^[1]. Meanwhile, aggregated funding rates for ETH/USDT on Binance turned negative, signaling a shift in market sentiment BloFin^[3].

Ethereum's performance contrasts with Bitcoin's prolonged struggle above $116,000. While BTC faces sustained selling pressure, ETH has rebounded closer to its average trading range, buoyed by $10.16 billion in strategic Ethereum reserves and $21.85 billion in spot ETF holdings Cointelegraph^[1]. However, the altcoin remains capped near $4,000, defying expectations that ETF inflows would push it above long-term resistance Cointelegraph^[1].

The taker buy/sell ratio, a key on-chain indicator, has fluctuated sharply. In late September, it fell to 0.87, one of the lowest levels in 2025, suggesting bearish dominance Coinsurges^[6]. Conversely, in October, the ratio surged to 1.09, the highest since January, reflecting renewed bullish optimism BeInCrypto^[5]. These swings highlight the market's mixed sentiment, with some analysts viewing the consolidation as a natural post-rally cooldown TradingView^[7].

Trump's tariffs, announced on July 31, have had a cascading effect. The crypto market lost $250 billion in valuation as Bitcoin dipped below $114,000, while Ethereum dropped 11% to $3,000 TheStreet^[8]. The U.S.-China trade tensions have exacerbated liquidity strains, with Binance and Coinbase reporting system strains and delayed transactions during the crash TheStreet^[8].

Despite the near-term volatility, long-term fundamentals remain intact. Institutional on-chain accumulation continues, and strategic ETH reserves have not been depleted Cointelegraph^[1]. Analysts caution that a sustained rebound would require Ethereum to reclaim key support zones, such as $3,775, while breaking above $3,950 could reignite bullish momentum Gate^[4].

The market now faces a critical juncture. If Ethereum stabilizes above $3,600, the $3,580–$3,750 range could act as a rebound zone, offering upside potential. However, a breakdown below $3,550 risks testing lower supports at $3,300–$3,350 Gate^[4].