Ether Leads Crypto Sell-Off, Plunging 7% Amid $600M Liquidations

Ethereum’s native token Ether (ETH) suffered the sharpest decline among the CoinDesk 20 Index on Friday, falling twice as far as Bitcoin amid escalating U.S.-China trade tensions.

Markets reeled after President Trump threatened a “massive increase” in tariffs on Chinese goods, fueling a broad crypto downturn. Ether slid 7% from its session high, falling below $4,100, its weakest level since late September. In comparison, Bitcoin (BTC) dropped 3.5% to under $118,000, while the CoinDesk 20 Index as a whole fell 5%.

The sell-off triggered a liquidation cascade across crypto derivatives, wiping out over $600 million in leveraged positions, according to CoinGlass. Ether accounted for the largest share, with more than $235 million in long positions liquidated—bets made to profit from price gains.

Technical Analysis

• Selling pressure intensified around 14:00 UTC, with a trading volume of 372,211 units, nearly double the 24-hour average of 190,747 units.
• Volume-based resistance was confirmed near $4,287.
• Primary resistance appeared at $4,141 during a failed recovery attempt.
• Potential support formed just below $4,100, where buying interest briefly emerged.

CoinDesk Research noted that Ether’s breakdown of these critical support levels was a key factor behind the liquidation cascade, highlighting the heightened vulnerability of leveraged positions during periods of market stress.