Rebecca Cruz Ethereum shows resilience after Black Monday crash with ETH down 6.7 percent while altcoins plunged over 90 percent. Analysts predict ETH could rally to $5500 after the market turmoil.
Ethereum shows resilience after Black Monday crash
Ethereum has once again proven its strength in a sea of volatility. Following the market-wide collapse dubbed Black Monday, Ethereum emerged as one of the more resilient assets, falling only 6.7 percent compared to the devastating losses of many altcoins that saw their values plummet by over 90 percent. The move came as global traders reacted to US President Donald Trump’s latest tariff announcement on Chinese goods, triggering panic across both traditional and digital markets.
The ETH price dropped to around $3510 on Friday before quickly rebounding to above $3800, demonstrating how the Ethereum network’s investor base remains firm even in extreme downturns. The sharp pullback briefly tested the 200-day exponential moving average, which acted as a strong support zone. Market data showed the relative strength index dipping near oversold levels, suggesting the selling may have reached exhaustion.
ETH price steadies while altcoins bleed out
While Ethereum faced its steepest one-day decline in months, its recovery was notably quicker than that of other digital assets. Data from Coinglass revealed that nearly 1.6 million traders were liquidated during the event, making it the most aggressive washout in crypto history. Yet, even amid the chaos, ETH stood tall.
Analysts observed that Bitcoin and Ethereum fared significantly better than the long tail of altcoins that “nuked” between 70 and 95 percent. This resilience underscores Ethereum’s unique role as the backbone of decentralized finance, NFTs, and the broader Web3 economy. As the market begins to stabilize, traders are revisiting the idea that ETH’s utility-driven demand continues to cushion it against speculative selloffs that often wipe out lesser-known tokens.
Exchange inflows signal mixed sentiment for ETH holders
Despite the signs of recovery, some on-chain indicators point toward caution. According to CryptoQuant, Ethereum exchange inflows hit their highest level of 2025 on Saturday, marking a potential uptick in selling activity. A spike in inflows generally suggests that holders are preparing to move coins into exchanges, possibly to realize profits or cut losses.
Still, the broader outlook remains uncertain. Withdrawals from the Ethereum staking queue reached a record $10 billion in October. Although this could signal potential sell pressure, market intelligence firm Nansen noted that not all validators exiting the queue are planning to liquidate their positions. Many may be repositioning for better yield strategies or re-staking once the market stabilizes.
These moves reveal a fascinating dynamic among Ethereum’s institutional and retail participants, who appear to be recalibrating rather than exiting entirely. This kind of rotation often precedes a new accumulation phase, which could reinforce ETH’s long-term price floor.
Analysts predict ETH could climb to new highs after correction
Investment research firm Fundstrat believes Ethereum could rally to $5550 once the dust settles. The analysts argue that the market correction has flushed out excessive leverage and that a rebound could follow as macro uncertainty eases.
If history is any guide, such sharp liquidations have often marked major local bottoms for ETH. The rebound from Friday’s low already hints at renewed strength among long-term holders who continue to view Ethereum as a blue-chip digital asset.
Moreover, the ongoing progress in Ethereum’s scaling ecosystem from Layer 2 rollups to growing institutional adoption through tokenized assets—continues to underpin its long-term growth story. These developments could draw renewed interest once risk appetite returns, particularly if Bitcoin’s next move triggers another wave of capital rotation into smart contract platforms.
Ethereum resilience reinforces its market dominance
For now, Ethereum remains down about 22 percent from its all-time high near $4957, but the network’s fundamentals tell a story of maturity rather than decline. Unlike smaller tokens that rely solely on speculation, ETH continues to generate real economic activity across staking, decentralized exchanges, and tokenized assets.
Traders watching Ethereum price charts note that holding above the $3800 level is crucial to maintain bullish momentum. If the support continues to hold and macro headwinds ease, Ethereum could lead the next recovery phase as it often has after previous market shocks.
As the dust settles from one of crypto’s most brutal days, Ethereum’s measured decline and rapid stabilization have reaffirmed its position as the market’s anchor. The coming weeks will reveal whether the second largest cryptocurrency by market cap can transform this resilience into a renewed upward breakout.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
