Ethereum’s price dropped below $3,100 recently amidst high-volume sell-offs, driven by the perception of increased risk compared to Bitcoin, reflecting a broader market trend.
The plunge underscores market sentiment shifts, affecting institutional inflows and causing ripple effects across related currencies, prompting intensified focus on Ethereum’s long-term scalability efforts.
Ethereum drops below $3,100 amid market volatility; experts weigh in on potential recovery paths.
Ethereum Price Falls Below $3,160 Amid Sell-off
The recent drop in Ethereum’s price to levels between $3,115 and $3,160 highlights a broad market risk-off sentiment. Heavy selling and technical signals have positioned ETH as being viewed riskier than Bitcoin by investors.
The Ethereum Foundation, led by Vitalik Buterin and recently appointed CEO Chi Tsang, continues to focus on long-term protocol utility despite the ongoing market volatility. Their strategic shift aims to strengthen Ethereum’s DeFi and institutional market presence.
Institutional Wallets Accumulate 1.64 Million Ethereum
Institutional wallets are accumulating Ethereum as retail participation wanes, according to Glassnode analytics. Major cryptocurrencies experienced an 11–20% decline, with Ethereum leading the decrease due to perceived risk compared to Bitcoin.
When examining potential outcomes, experts note that institutional accumulation of 1.64 million ETH suggests a strategic perception of low valuations. The current market repricing echoes previous instances where whales and institutions stepped in during downturns, focusing on long-term potential.
History Repeats As Whales Buy In Downturns
Past events, such as price drops below $3,500 in 2025, saw quick buybacks by whales and institutions. This trend reflects a recurring pattern-based correction rather than a long-term bearish outlook, supported by institutional actions.
“Ethereum correction is mostly positioning flow—institutions are buying dips while retail is fearful. If support holds above $3,100, my base case is a late Q4 recovery.” – Raoul Pal, CEO, Real Vision
Experts, including Arthur Hayes and Raoul Pal, highlight positioning flows and institutional buying in the current downturn. Speculation centers on a potential late Q4 recovery if pivotal support holds, emphasizing the importance of strategic positioning amidst volatility.
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