Home Finance Ethereum Shows Relative Strength After Market’s $20B ‘Black Monday,’ Outperforming Hard-Hit Altcoins
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Ethereum Shows Relative Strength After Market’s $20B ‘Black Monday,’ Outperforming Hard-Hit Altcoins

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Ethereum Shows Relative Strength After Market’s $20B ‘Black Monday,’ Outperforming Hard-Hit Altcoins

In the aftermath of Friday’s historic market crash, which triggered a record $20 billion in liquidations, Ether () is demonstrating notable resilience compared to the broader altcoin market. While the asset is down approximately 6.7% over the past 24 hours, its performance stands in sharp contrast to many smaller-cap tokens that experienced catastrophic losses, with some plummeting by as much as 95%.

A Technical Test at Key Support

The market-wide panic, sparked by U.S. President Donald Trump’s surprise tariff announcement, sent Ether tumbling over 20% in a single day to a low of approximately $3,510. However, the asset found crucial support at its 200-day exponential moving average (EMA), a long-term trend indicator that is closely watched by technical analysts. The price has since rebounded to trade above $3,800.

Further reinforcing the potential for a reversal, the Relative Strength Index (RSI) on the daily chart fell to 35, nearing the “oversold” threshold of 30. This technical posture suggests that the intense selling pressure may be reaching a point of exhaustion.

A Flight to Quality Amid Altcoin Carnage

The brutal sell-off highlighted a clear “flight to quality” within the digital asset market, as panicked investors appeared to rotate capital out of higher-risk altcoins and into the relative safety of the two largest cryptocurrencies. As one crypto investor noted, “BTC and ETH did relatively well compared to the long-tail of alts, which nuked 70% or more, with some even going down 95% or more.”

This dynamic underscores Ether’s position as a foundational, “blue-chip” asset within the ecosystem, one that tends to retain value more effectively than its smaller-cap peers during periods of extreme market stress.

Conflicting Signals: Bullish Targets vs. On-Chain Sell Pressure

Looking ahead, analysts are divided. Bullish forecasts, such as one from research firm Fundstrat, project that Ether could rally to a new all-time high of $5,550 after bottoming out in Friday’s crash. However, this optimism is tempered by concerning on-chain data.

According to CryptoQuant, the Ethereum exchange inflow mean—a metric tracking the average number of coins sent to exchanges for potential selling—hit a 2025 high of 79 on Saturday. This indicates a significant increase in potential sell pressure. Additionally, withdrawals from Ethereum’s staking queue are reported to have hit a record $10 billion in October, which could introduce further supply to the market if stakers choose to sell their unlocked ETH.

Ethereum now finds itself at a critical juncture. The asset’s ability to defend a key long-term moving average during a historic market sell-off highlights its structural importance. However, this technical resilience is being weighed against a significant on-chain supply overhang. The market will now be closely watching to see if dip-buyers can absorb this potential pressure and validate the bounce from Friday’s lows.

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