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Ethereum weathers crypto "Black Monday" but still slides
Ethereum (ETH) fell roughly 6.7% in the 24 hours following last Friday’s abrupt market collapse, yet outperformed many smaller altcoins that plunged far deeper. The native token of the Ethereum layer‑1 network hit an intraday low near $3,510 — more than a 20% drop in a single day — after a wave of risk‑off trading triggered by a major macro announcement roiled markets.
Technical picture: rebound from dynamic support
After testing the 200‑day exponential moving average (EMA), a commonly watched dynamic support level, ETH bounced back above $3,800. The relative strength index (RSI) sits near 35, approaching oversold territory, which could point to a potential recovery if buying interest returns. Traders will monitor the EMA and RSI closely for signs of stabilization or renewed downside momentum.
Ethereum price action and analysis
Liquidations and market shock
The flash crash produced historic liquidations across the crypto ecosystem, with roughly 1.6 million traders liquidated during the episode, according to Coinglass. Market intelligence estimated as much as $20 billion in losses within a 24‑hour span — the most severe liquidation event in crypto history. The shock accelerated selling across long‑tail altcoins: many projects plunged 70% or more, and a number of tokens collapsed by over 95%.
Macro catalyst and market sentiment
Traders attributed the sudden sell‑off to heightened geopolitical and trade concerns after a tariff announcement amplified fears of a prolonged trade conflict between major economies. That macro shock amplified volatility across risk assets, testing market depth and investor conviction in both Bitcoin and Ethereum.
How Ethereum fared vs. altcoins
While ETH’s drawdown was painful, it was markedly less severe than many smaller tokens. Market observers noted that Bitcoin and Ethereum showed relatively greater resilience compared with the long tail of altcoins, which experienced extreme, disorderly price moves during the panic.
Outlook: can ETH still reach $5,500?
ETH remains over 22% below its August all‑time high near $4,957. Some research groups, including analysts at Fundstrat, believe Ethereum could revisit and surpass its prior peak — targeting a new high around $5,550 — once markets find a durable bottom. That bullish scenario depends on returning risk appetite and continued on‑chain adoption.
Ether exchange inflow mean hits highest level recoded in 2025
Risks from exchange inflows and staking withdrawals
Offsetting the bullish case, exchange activity shows potential selling pressure: the Ethereum exchange inflow mean spiked to 79, the highest level recorded in 2025 per CryptoQuant. Elevated inflows to exchanges often precede selling, while reduced inflows imply holders are more likely to keep coins off exchanges. Additionally, withdrawals from Ethereum’s staking queue reached a record $10 billion in October. Market analysts at Nansen caution that while validator exits may increase available supply, withdrawals do not guarantee immediate selling.
What traders should watch next
Key indicators for the coming days include exchange inflows, staking exit activity, the 200‑day EMA, RSI readings, and macro headlines tied to trade policy and geopolitical risk. Short‑term volatility will likely remain elevated; however, Ethereum’s relative strength versus smaller tokens could attract buyers looking for a lower‑risk play within crypto if macro pressures ease
Source: cointelegraph
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