The crypto market sold off sharply on October 11, 2025, after President Donald Trump confirmed that 100% tariffs on Chinese imports would take effect on November 1.
The announcement triggered a wave of risk-off sentiment across both traditional and digital asset markets.
At press time, the Ethereum price was back above the $4K level, having recovered from the bloodbath over the weekend.
Ethereum (ETH) Price Fell Through Key Averages
Sellers pressed their advantage early and never lost momentum. The move accelerated once price slipped beneath the 50-day trend average near $4,400.
That average tracks the prior 50 days of closes and often signals near-term direction. A cluster of nearby supports failed during the drop. The first area sat near $4,350 and gave way quickly.
Traders then focused on the $3,800 region, which marked a prior consolidation band. Intraday flows breached that level during peak volatility before ETH price stabilized.
Below $3,800, market participants watched $3,500 and $3,200. Those zones aligned with earlier accumulation ranges from late summer.
The 200-day trend average hovered near $3,100 and represented a longer-term reference. That average smooths price over a wider period and can define primary trend bias.
Futures liquidations added mechanical pressure to the decline. As long positions unwound, cascading orders hit books across major venues.
The unwind pushed spreads wider and raised slippage for market orders. That dynamic often intensifies downside moves during stress.
Volume expanded into the drop. Order flow tilted heavily toward market sells as bids pulled lower. Depth recovered later in the session but remained thinner than last week.
The rebound attempts looked tactical, not trend-defining, based on footprint data and tape behavior.
Option flows reflected the move as well. Dealers adjusted gamma exposure lower while hedging deltas into weakness.
Skews sharpened toward puts across near-dated maturities. Implied volatility rose across the curve, while realized volatility caught up during the afternoon.
From a structure lens, the prior breakout attempt failed. Price could not hold above the former range highs and rotated back inside the range.
Such reversions often test mid-range levels before direction emerges again. For now, bears held control of momentum.
Ethereum (ETH) Price Faced Broad Altcoin Pressure
The weakness did not isolate to ETH. Large caps and high-beta tokens declined in tandem. BNB, XRP, SOL, TRX, and DOGE all registered steep losses.
Performance dispersion narrowed, which suggested a macro-driven shock rather than token-specific news.
Liquidity conditions tightened across centralized exchanges. Bid-ask spreads widened during the heaviest selling and normalized later.
Funding rates turned mixed as perpetual markets reset. Open interest fell as traders reduced leverage and cleared stale longs.
Spot markets showed consistent net outflows during the initial wave. Market makers widened quotes to manage inventory risk.
That step is common when realized volatility rises quickly and order books thin. The effect can amplify moves until two-sided interest returns.
Correlations across risk assets rose. Equity futures sold off as the headline spread. The dollar firmed while Treasury yields moved unevenly across the curve.
Those shifts signaled a classic risk-off impulse and a flight to perceived safety. Stablecoin liquidity remained functional.
Spreads in major pairs, including USDT and USDC, held close to par after the first shock. That support helped limit dislocations between venues and reduced cross-exchange basis gaps.
On-chain flows did not show a single dominant driver. Exchange inflows climbed during the drawdown, matching typical behavior in stressed sessions.
Whale-size transfers appeared, but the tape suggested a broad set of sellers rather than a coordinated block.
The breadth and speed of the decline aligned with a macro catalyst. The tariff announcement changed inflation and growth expectations at the margin.
Markets priced tighter global trade conditions and potential cost pressures. That backdrop tends to weigh on long-duration risk and high-beta assets.
What Could Shape Trading Next Week
The market’s near-term map centered on a few clear levels. The $3,800 to $3,500 zone formed an immediate decision area.
If buyers defended that band on closing frames, a range-recovery attempt could follow. A firm defense would set up retests of the $4,200 to $4,400 supply region.
A failure beneath $3,500 would open a path toward $3,200. That area overlapped with prior acceptance and a shelf of historical demand.
Deeper weakness could bring the 200-day trend average near $3,100 into play. Traders often calibrate risk around that longer-term gauge.
Momentum measures favored caution after the drop. Short-term oscillators moved to oversold readings on intraday charts.
Those conditions can support bounces, but trend context matters. In downtrends, oversold can persist while price grinds lower.
Flows from BTC remained relevant. If BTC steadied near $112,000, cross-market pressure could ease.
That stabilization could allow ETH to re-engage mid-range targets around $4,200 to $4,400. Without that support, sellers would retain control of the tape.
Liquidity into the weekly close also mattered. Weekend sessions often carry thinner depth. Thinner books can magnify moves in both directions.
Traders typically monitor exchange order book snapshots and high-frequency prints for early signals.
Derivatives positioning offered another lens. A rebuild of open interest alongside rising basis could signal fresh risk appetite.
Conversely, declining open interest with flat basis would suggest de-risking, not new conviction. Near-dated options skews should track hedging demand into macro headlines.
Macro data and policy communication remained the chief swing factors. Tariff implementation details, corporate guidance, and any policy follow-ups could stir cross-asset volatility.
Energy prices and the dollar path would also shape broader liquidity conditions. In sum, ETH sat inside a well-defined map. The $3,800 to $3,500 band set the first checkpoint.
A sustained reclaim toward $4,200 to $4,400 would challenge seller control. A breakdown toward $3,200 would extend the bear phase and bring the longer-term average into focus.