Ethereum experienced a sharp decline on Friday, October 10, falling to nearly $3,500 during a volatile trading session. The world’s second-largest digital currency by market value saw a 20% drop from its daily high.
The token had risen to almost $4,400 earlier in the day before the sell-off began. According to Coinbase data from TradingView, Ethereum bounced back after reaching its intraday low. The token approached $4,000 and traded close to $3,800 later in the day.
The decline came after President Donald Trump posted on Truth Social about new tariffs on China. Trump announced the U.S. would start imposing a 100% tariff on China beginning November 1. He also stated the tariff could kick in earlier depending on China’s actions.
*TRUMP: US WILL IMPOSE 100% TARIFF ON CHINA STARTING NOV 1
Welcome back to the trade war. pic.twitter.com/clooxnR8zc
— Geiger Capital (@Geiger_Capital) October 10, 2025
Trump also announced he would not meet with Chinese President Xi Jinping at APEC South Korea 2025 later in October. This announcement came as markets were already showing signs of stress.
Traditional financial markets also declined on Friday. The S&P 500 fell 2.7% while the Dow Jones Industrial Average dropped 1.9% for the day. Gold futures, often seen as a safe-haven asset, rose more than 1% to trade at roughly $4,035 per ounce.
Greg Magadini, director of derivatives for Amberdata, explained the market reaction. He stated that flight to quality was sending the dollar and Treasuries higher as traders turned defensive. The market focused on global tariff fears after a rally in crypto, precious metals, and equities.
Magadini noted that if China becomes a trade hawk alongside Trump, the top world economies could drag down global growth. This caused markets to move in a risk-off fashion, dragging Bitcoin and other cryptocurrencies down.
Funny how so many “experts” are suddenly calling for a BEAR MARKET.
Leverage wiped. Liquidity cleared. Weak hands capitulated.
This is exactly when MASSIVE RALLIES are born.
All signs to me point to a new $ETH ATH in the coming weeks. pic.twitter.com/E5xOoqTh21
— AlΞx Wacy 🌐 (@wacy_time1) October 11, 2025
The technical picture for Ethereum deteriorated during the session. The token failed to hold above its 20-day simple moving average at $4,246.57. The decline accelerated when Ethereum broke through the $4,000 psychological support level.
Trading volume surged to $6.87 billion on Binance spot markets alone. This indicated participation from both institutional and retail traders. The Relative Strength Index dropped to 34.8, approaching oversold territory.
The MACD indicator turned decisively bearish with a histogram reading of -51.26. Ethereum now trades 13.5% below its 50-day moving average at $4,377.82. However, the token maintains a 21.9% premium to its 200-day moving average at $3,105.75.
Tim Enneking, managing partner of Psalion, commented on how digital assets moved with other risk assets. He noted the correlation between U.S. equities and crypto was 100% correlated and perfectly timed with the S&P 500’s rise and then rapid 2% drop.
Joe DiPasquale, CEO of BitBull Capital, offered a different perspective. He stated Ethereum’s drop looked to be a mix of technical and macro forces. The token ran into resistance near $4,400, and when momentum stalled, long liquidations accelerated the move lower.
Jonathan Morgan, lead crypto analyst at Stocktwits, pointed to leveraged positions as a key factor. He wrote that the dip was almost entirely the result of a fast wipeout in leveraged ETH longs.
Morgan also referenced ETF flow data as showing a lack of conviction for ETH recently. There was a surge on October 7 with around $420 million in net ETH flows. This dropped to just $70 million on October 8, and on October 9 it turned net negative.
The token ultimately tested lows near $3,435 during the session. Key resistance levels have formed at $4,755 and $4,956.78. Immediate support appears at the session low of $3,435.
The pivot point at $3,870.46 will be crucial for determining short-term direction. Market participants appear to be de-risking positions as technical levels fail to hold.
Ethereum’s elevated volume suggests both institutional profit-taking and retail capitulation. Automated trading systems likely contributed to the downward pressure as stop-losses triggered.
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