The cryptocurrency market experienced unprecedented turbulence from October 10 to 11, 2025. After U.S. President Trump announced a 100% tariff increase on China, the total liquidation amount in the global cryptocurrency market reached $19.358 billion, with over 1.66 million traders forced to liquidate their positions.
In this storm, the price of Ethereum (ETH) once plummeted by more than 20%, hitting a low of about $3380, causing panic among global investors.
01 The Truth Behind the Big Dump: Three Factors Triggering an Epic Collapse
The recent big dump of Ethereum is not a coincidence, but rather a perfect storm triggered by a combination of macro politics, market structure, and technical failures.
After Trump’s tariff announcement, global risk assets quickly reacted. As a representative of high risk, the cryptocurrency market was the first to be affected, and panic sentiment spread rapidly.
Leverage trading has become an accelerator for this big dump. According to data, a total of over 16.7 billion USD in long positions and 2.4 billion USD in short positions have been liquidated.
Excessive leverage is widely used in a bull market, and when the market reverses, the successive margin calls accelerate the price fall.
Technical failures occurred on trading platforms such as Binance, further exacerbating the market chaos. Binance ultimately promised to provide approximately $283 million in compensation.
02 Ethereum Resilience: Strong Performance of Rapid Rebound After Big Dump
After the market crash, Ethereum has shown remarkable resilience. As of October 13, Ethereum price Has returned above $4100, with an intraday increase of over 11%.
This rebound indicates that the market still has confidence in the fundamentals of Ethereum. Compared to other historical big dumps that required months to recover, Ethereum has achieved a significant recovery in just a few days this time.
Institutional investors are accelerating their layout by taking advantage of this pullback. BitMine has been continuously increasing its position in Ethereum during the market cleanup, having purchased a total of 128,000 ETH at a cost of 480 million dollars.
Currently, BitMine holds 2.83 million Ether, with a total value of approximately 10.5 billion dollars.
03 Ethereum Vitality: The Fundamentals Remain Strong
Beyond price fluctuations, the fundamentals of Ethereum remain solid. Ethereum has accumulated a 36% increase since April 2025, and this pullback is a normal adjustment that was overdue.
Tom Lee, the chairman of BitMine, believes that this severe volatility does not come from a structural change in the market, so it cannot be classified as a bear market signal.
On the contrary, he believes this is a healthy washout process for the market’s deleveraging, a brief pause during the bullish advance.
The three core driving forces continue to fully support the crypto market: the ongoing development of AI technology, Wall Street’s continued adoption of cryptocurrencies, and the Federal Reserve reopening the rate cut cycle.
04 Historical Perspective: The Cycles of the Crypto Market
Looking back at the history of cryptocurrency, large-scale liquidation events like this are not uncommon, but the market always manages to recover.
Compared to historical big dumps like the Luna crash in 2022 and the March 12 event in 2020, the October 11 incident, although involving larger liquidation amounts, did not harm the fundamentals.
Historical patterns indicate that within 1-3 months after a black swan event, the market typically rebounds by more than 30%.
Currently, Bitcoin has rebounded from its low point, and institutions like BlackRock are quietly bottom-fishing ETFs, indicating that market confidence is recovering.
05 Future Outlook: The Path Forward for Ethereum
For investors, understanding the mechanisms behind market fluctuations is more important than panicking blindly. This big dump has cleared excessive leverage in the market, laying the foundation for a healthier rise.
The decision by Gate exchange to delist 21 pairs of ETF leveraged tokens on October 13 also reflects that the trading platform is actively optimizing its product structure and reducing systemic risks.
Regarding key price levels, the resistance level for Ethereum is around $4600, followed by the psychological barrier of $5000.
The support level is at $3840 (main), then $3500 and $3200.
Future Outlook
According to data from Lookonchain, during the market cleanup on Sunday, the BitMine wallet address continuously increased its holdings of Ether, purchasing a total of 128,000 ETH for $480 million. This stands in stark contrast to the retail investors who panicked and sold.
Bitcoin has rebounded from a low of $105,900 to $115,100, while Ether has also returned above $4,100. The market is always cycling between fear and greed, and those who truly survive are always the investors who can see through the cycles.
