The crypto market endured a severe downturn on October 10, 2025, dubbed Black Monday, with total capitalization dropping by over $560 billion. Ethereum (ETH) declined 6.7%, yet it outperformed numerous altcoins amid widespread liquidations. This event underscores ETH's relative stability in turbulent times.
Understanding Crypto Black Monday
Black Monday stemmed from escalating US-China tariff tensions, triggering panic sales across risk assets. Bitcoin fell around 8.4% to $104,782, while ETH's drop remained milder at 6.7%.
According to Forbes, ether prices plunged due to tariff fears, roiling markets and causing a 20% intraday dip before partial recovery. This highlights how geopolitical factors amplify crypto volatility.
Coindesk reported ETH leading liquidations with a 7% plunge, contributing to $600 million in carnage. Yet, ETH's losses were less severe than altcoins like Dogecoin, which dropped 50%.
ETH's Resilience Factors
Ethereum's network fundamentals bolstered its performance during the crash. Stablecoin supply on ETH grew rapidly, providing liquidity buffers.
#Network Strength in CeFi
Centralized finance platforms rely on ETH for settlements, aiding quick rebounds. DeFi protocols on Ethereum processed transactions seamlessly while some centralized exchanges faltered.
Analysts note ETH's yield and lower issuance rates enhance its appeal over altcoins. BlackRock's institutional holdings in ETH reached $16 billion, signaling confidence.
#Comparison to Altcoins
Altcoins like XRP fell 17% and Solana dropped similarly, per Invezz data. ETH's 12% overall dip in some reports was milder, reflecting stronger ecosystem support.
FastBull indicated Bitcoin's 7.5% drop contrasted with ETH's 13%, but altcoins suffered more amid $19 billion liquidations. This disparity emphasizes ETH's edge in CeFi integrations.
Market Trends and Quotes
Experts attribute ETH's resilience to institutional inflows via ETFs. Brian Rose from London Real stated that ETH ETFs absorbed over $400 million weekly, outpacing Bitcoin.
Crypto analyst rip.eth highlighted ETH's 5x more ETF inflows than BTC recently, with yield advantages securing 60% of DeFi value. Such metrics drive ETH's outperformance.
BeInCrypto pointed to a 13% ETH crash creating rebound opportunities, tied to tariff disputes. This suggests short-term dips but long-term strength in centralized finance.
Implications for Investors
Traders should monitor ETH's support levels around $3,500 for potential entries. Diversifying into CeFi-backed ETH assets may mitigate risks from altcoin volatility.
#Strategic Action Steps
Review portfolio allocations favoring ETH over high-risk alts. Use on-chain data to gauge recovery signals in centralized exchanges.
Economic Times reported ETH crashing 5.8% to $3,637, yet analysts predict quick rebounds due to robust fundamentals. This informs actionable strategies.
Future Outlook
Ethereum's modular scaling and ETF growth position it well for post-crash gains. Centralized finance adoption could accelerate as institutions seek reliable assets.
CoinCentral forecasted ETH targeting $4,300 amid exchange supply lows, reinforcing its resilience narrative. Monitoring macro factors remains key.
This Black Monday event reveals ETH's comparative strength in CeFi, offering lessons on asset selection. It stresses the value of resilient networks amid market shocks.
