Ethereum Surges 8% to $4,111 After Rebounding from $3,861 Plunge – What’s Driving the Rally?
- How Did Ethereum’s Price Swing Unfold?
- What Sparked the Market Panic?
- How Did Diplomatic Moves Calm the Markets?
- What’s Next for Ethereum?
- FAQ: Ethereum’s Rollercoaster Weekend
Ethereum (ETH) staged a dramatic 8% recovery to $4,111 on October 13, 2025, clawing back from a steep drop to $3,861 triggered by geopolitical tensions between the U.S. and China. The rebound followed a weekend of market chaos fueled by trade war fears and the largest single-day crypto liquidation in history. Here’s how the drama unfolded—and why traders are breathing easier now.
How Did Ethereum’s Price Swing Unfold?
Ethereum’s wild ride began late Friday, October 11, when global markets nosedived after former President Donald Trump accused China of restricting rare earth mineral exports—a claim Beijing later clarified as exaggerated. ETH plunged to $3,861 amid panic selling, wiping out billions in leveraged positions. But by Sunday, as diplomatic tensions eased, the cryptocurrency rebounded sharply to $4,111, according to CoinMarketCap data. "This was a classic ‘buy the rumor, sell the news’ event," noted a BTCC analyst. "Traders overreacted to headlines before facts emerged."
What Sparked the Market Panic?
The chaos started when China announced new export controls (not a ban) on rare earth minerals at 8:30 a.m. ET on October 9. Markets barely flinched—until Trump’s inflammatory Truth Social post framed it as an embargo. "Beijing is cutting off vital supplies," he wrote, sparking a sell-off across stocks, oil, and crypto. At one point, over $2.8 billion in crypto positions were liquidated in 24 hours, per TradingView metrics. "The speed of the crash was breathtaking," one trader told me. "It felt like March 2020 all over again."
How Did Diplomatic Moves Calm the Markets?
By Saturday night, Beijing clarified that qualified rare earth shipments would still be approved. TRUMP then softened his tone, posting: "Don’t worry about China—it’ll all be fine!" His administration walked back tariff threats, with VP JD Vance urging "the path of reason." The White House even signaled openness to negotiations. "Markets hate uncertainty more than bad news," explained the BTCC team. "Once traders realized this wasn’t a full-blown trade war, ETH rebounded hard."
What’s Next for Ethereum?
With the November 1 tariff deadline looming, volatility could return. But for now, ETH’s recovery suggests bullish sentiment. Key factors to watch:
- Technical levels: ETH must hold above $4,000 support
- Macro risks: U.S.-China trade talks in late October
- On-chain data: Exchange reserves are declining—a bullish sign
This article does not constitute investment advice.
FAQ: Ethereum’s Rollercoaster Weekend
Why did Ethereum drop to $3,861?
ETH crashed due to panic selling after Trump mischaracterized China’s export controls as an embargo, sparking trade war fears.
How quickly did Ethereum recover?
Within 48 hours—from Friday’s low to Sunday’s $4,111 peak—as diplomatic tensions eased.
Was this the biggest crypto liquidation ever?
Yes. Over $2.8 billion in Leveraged positions were wiped out on October 11, per Bybit and BitMEX data.
