Ethereum News Today: Trump's Tariffs Trigger $400B Crypto Panic as Ethereum Plummets 10% in 24 Hours

Ethereum (ETH) plunged below $4,000 on October 10, 2025, marking one of the most severe selloffs in 2025 as the broader crypto market lost over $400 billion in market capitalization. The price dropped over 10% in 24 hours, hitting an intraday low near $3,436 before stabilizing around $3,900 Ethereum Crashes Below $4K as Crypto Market Meltdown^[1]. This collapse followed U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, effective November 1, in response to Beijing's export controls on rare earth materials. The move triggered global market panic, with Bitcoin (BTC) falling 12% to $107,000 and altcoins like Solana (SOL), BNB, and XRP plummeting 14-17% .

Technical analysis highlighted ETH's breakdown below critical support levels. The 50-day simple moving average (~$4,400) and the $4,356 support were breached, with the 200-day SMA near $3,098 identified as a potential long-term floor if the selloff deepens Ethereum Crashes Below $4K as Crypto Market Meltdown^[1]. Traders are now monitoring $3,840 and $3,500 as next key supports. On-chain data revealed over $770 million in liquidations, with Ethereum leading at $233.32 million, as leveraged positions collapsed under the sharp price action .

The selloff extended to altcoins, with major tokens experiencing double-digit losses. BNB fell 13.09% to $1,093, XRP dropped 17.16% to $2.32, and Solana (SOL) fell 14.31% to $189.21. Memecoins like Dogecoin (DOGE) lost 26.48%, underscoring the widespread panic Ethereum Crashes Below $4K as Crypto Market Meltdown^[1]. Institutional investors exacerbated the downturn, with Ethereum spot ETFs recording $389 million in outflows in October and a large whale transferring $54 million in ETH to exchanges, signaling profit-taking after a prior 19% rally Ethereum Price Crash: Drop Below $4,000 Could Trigger $1 Billion in Liquidations^[2].

The Trump-China trade tensions escalated fears of a renewed global economic slowdown, higher inflation, and reduced liquidity-factors detrimental to speculative assets like crypto. Market watchers warned that the combined impact of tariffs and export restrictions could strain global supply chains, particularly in semiconductors and AI infrastructure .

Analysts offered mixed outlooks. Mechanism Capital's Andrew Kang predicted cascading liquidations could push ETH toward $3,200–$3,600 if long positions continued to unwind Ethereum Price Crash: Drop Below $4,000 Could Trigger $1 Billion in Liquidations^[2]. Conversely, BitMine Technologies' Tom Lee maintained a bullish stance, forecasting a potential $12,000–$15,000 rally by year-end if the Federal Reserve's anticipated rate cuts materialize Trump Crashes Crypto Markets With 100% Tariff On China^[4]. Short-term volatility remains high, with traders monitoring Bitcoin's stability around $111,000–$113,000 as a potential catalyst for ETH's rebound Ethereum Crashes Below $4K as Crypto Market Meltdown^[1].

The immediate focus remains on whether Ethereum can hold above $3,800–$3,500. A breakdown could trigger further selling pressure, while a recovery above $4,200 might rekindle bullish momentum. For now, the market remains in a risk-off environment, with the coming weeks critical for determining the trajectory of the crypto sector.