- Ether’s price dropped nearly 20%, hitting about $3,500 before partially recovering.
- Sharp market declines followed renewed U.S. tariff threats against China.
- Major equity indices, including the S&P 500 and Dow Jones, also fell.
- Analysts linked Ether’s fall to both technical trading factors and macroeconomic news.
- Safe-haven assets like Gold saw gains as risk assets declined.
On Friday, October 10, the price of Ether, the world’s second-largest cryptocurrency, saw a steep decline, falling to nearly $3,500. The drop occurred as renewed worries over U.S. tariffs on China pushed investors out of risk assets.
After rising to close to $4,400 earlier in the day, Ether’s value fell about 20% before recovering to around $3,800 at the time of reporting, according to Coinbase data from TradingView. The S&P 500 lost 2.7% and the Dow Jones Industrial Average dropped 1.9%, while gold futures rose over 1% to about $4,035 per ounce, based on Google Finance data.
Several analysts pointed to increased tariff concerns as a leading cause behind the sell-off. Former U.S. President Donald Trump announced via Truth Social that the United States intends to apply a new 100% tariff on Chinese goods starting November 1, which could begin sooner if China responds with further trade actions. He later confirmed he would not meet President Xi Jinping at the upcoming APEC summit.
Greg Magadini, director of derivatives at digital asset provider Amberdata, stated in an email: “Flight to quality is sending the USD and Treasuries higher as traders are turning defensive. After a major rally in crypto, precious metals and equities, the market today is focused on global tariff fears again.” Magadini noted that both the cryptocurrency and equity markets moved lower in a “risk-off” environment, meaning investors were seeking safer investments.
Tim Enneking, managing partner at Psalion, said the moves in Ether corresponded closely with sharp drops in U.S. stocks after Trump’s announcement. “As US equities markets trend down after the initial drop due to Trump’s announcement, ETH and most of the rest of the crypto ecosystem are following it,” he said.
Some analysts mentioned that technical trading factors also played a role. Joe DiPasquale, CEO of BitBull Capital, reported: “Ether’s drop looks 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.” DiPasquale added that rising dollar strength and negative sentiment contributed to Ether’s decline.
Jonathan Morgan, lead crypto analyst at Stocktwits, said fast liquidations of leveraged Ether long positions also drove prices down. He noted that recent data on exchange-traded fund (ETF) flows did not show consistent buying support for Ether.
Ether’s sharp downward move came as investors responded to fast-changing geopolitical news and adjusted their positions in both crypto and equity markets. As the situation remains uncertain, traders continue to monitor developments around U.S.-China trade relations and their impact on risk assets.
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