Friday's trading session brought heavy losses to the cryptocurrency market as escalating U.S.-China trade tensions rattled investors. A renewed threat from President Donald Trump to impose major tariff hikes on Chinese goods triggered widespread risk-off sentiment, sending shockwaves across digital assets.

Ethereum's native token, ether (ETH), was the hardest hit among the CoinDesk 20 Index constituents, plunging 7% from its Friday session high. ETH slipped below $4,100, marking its weakest level since late September. In comparison, bitcoin (BTC) fell 3.5%, dipping below $118,000, while the broader CoinDesk 20 Index dropped around 5%.

The market turmoil sparked a massive liquidation cascade across crypto derivatives platforms, with more than $600 million in leveraged positions wiped out, according to CoinGlass data. ETH accounted for the largest share of these losses, as over $235 million in long positions -- bets on the token's price rising -- were liquidated during the session.

Technical indicators pointed to a major support breakdown behind the sell-off. CoinDesk Research reported intense selling pressure emerging around 14:00 UTC, with trading volume spiking to 372,211 units, nearly double the 24-hour average of 190,747. Analysts identified volume-based resistance at $4,287, while primary resistance formed near $4,141 during a failed rebound attempt. On the downside, new support appears to be forming just below $4,100, where some buyers stepped in.

Despite the short-term weakness, market analysts such as Bitwise CIO Matt Hougan remain optimistic about the broader crypto landscape, highlighting Solana's strong setup as one of the best in nearly a decade. However, with macroeconomic uncertainty rising, crypto investors are bracing for heightened volatility in the days ahead.