Ethereum Drops 6.7% After Crypto Black Monday, Demonstrates Stronger Resilience Than Altcoins
During the recent crash known as “Crypto Black Monday,” the global cryptocurrency market witnessed rapid and severe liquidations, causing some altcoins to plummet by over 95% in value. However, Ethereum (ETH) proved far more durable, falling only 6.7% over the past 24 hours while showing resilience that stands out in today’s crypto news and across the wider blockchain technology landscape.
ETH’s stability amid historic liquidation event
Triggered by U.S. President Donald Trump’s tariff announcement, the market crash sent ETH spiraling down to $3,510 a drop of over 20% in a single day. Remarkably, ETH touched its dynamic support level, the 200-day exponential moving average (EMA), and quickly rebounded above $3,800, displaying a capacity to recover while smaller altcoins suffered catastrophic losses.
The relative strength index (RSI) for Ethereum also reached 35, indicating conditions near oversold levels and hinting at an impending reversal to the upside. Analyst sentiment affirms that while the massive liquidation wiped nearly $20 billion from the market and liquidated 1.6 million traders, ETH maintained stability compared to long-tail altcoins, which tanked over 70%, with some falling 95% or more.
Key technical signals and upside potential
Fundstrat research forecasts that ETH could rally toward $5,550 after bottoming out from Friday’s extreme market volatility, provided current support holds and broader adoption continues. Ethereum is currently down over 22% from its August all-time high of nearly $5,000, but its resilience is boosting confidence among crypto pur investors who value blockchain stability through market volatility.
Despite this cautious optimism, analysts warn of potential selling pressure. Ethereum’s exchange inflow mean—measuring coins sent to exchanges for possible selling hit a record high of 79, signaling that many holders may be preparing to liquidate. Likewise, October saw withdrawals from Ethereum’s staking queue surge past $10 billion, another factor that could introduce further sell-side pressure even as many stakers choose to reinvest rather than sell outright.
Market conditions and long-term outlook
The rapid cascade of liquidations has shaken confidence in the markets and fears of a drawn-out trade war between the U.S. and China have added to uncertainty. However, as ETH steadily rebounds and consolidates, historical patterns suggest a likelihood of recovery, supported by ongoing advances in decentralized finance (DeFi) and smart contract adoption.
Holding periods increase as investors opt for cold wallets or long-term staking, reflecting belief in Ethereum’s fundamental value proposition. Institutional inflows into spot ETH ETFs also hint at rising confidence in its future, providing a counterbalance to immediate selling pressures. As exchange reserves fall, upward momentum could return if traders shift towards holding rather than selling.
Conclusion
Ethereum’s 6.7% drop during the historic Crypto Black Monday crash illustrates its greater resilience compared to altcoins, many of which suffered colossal losses. Technical indicators, strong community conviction among the crypto pur sector, and ongoing institutional interest in blockchain technology suggest that ETH is well-positioned for a recovery, though elevated exchange inflows and large staking withdrawals could still weigh on prices in the short term. The unfolding volatility remains a focal point in crypto news, with analysts and investors closely watching this crucial chapter for blockchain markets.
