Ethereum News Today: Ethereum's Plunge: Short-Term Panic vs. Long-Term Institutional Bet

Ethereum (ETH) experienced a sharp decline in late October 2025, plummeting to a multi-month low of $3,500 amid heightened market volatility. The crash, driven by geopolitical tensions and leveraged position liquidations, saw over $600 million in crypto derivatives wiped out, with ETH accounting for $235 million in liquidated long positions. The price drop followed President Donald Trump's announcement of potential tariff hikes against Chinese goods, which intensified investor uncertainty and triggered a broad selloff across asset classes. ETH's decline outpaced Bitcoin's 3.5% drop, with the token falling 7% in a single day to its weakest level since late September Ethereum (ETH) Price News: Plunges 7% as Crypto Carnage^[1].

Technical analysis highlighted a breakdown in critical support levels, with selling pressure intensifying around $4,287 and $4,141. However, buyers emerged near $4,100, suggesting potential short-term support. The CoinDesk 20 Index, which tracks major crypto assets, also fell 5%, reflecting widespread market weakness. Overleveraged positions in futures and spot markets exacerbated the downturn, as traders rushed to exit long positions amid deteriorating sentiment Crypto Market Crash: Why BTC, ETH, XRP & Altcoins Are Plunging^[2].

Amid the turmoil, on-chain data revealed contrasting behaviors among market participants. Hackers and short-term traders accelerated sales of ETH, with stolen funds and profit-taking contributing to downward pressure. Meanwhile, institutional "whales" and institutional investors capitalized on the dip, accumulating over $456 million in ETH from centralized exchanges. These large-scale buyers, including dormant wallets resurfacing after a decade, signaled confidence in Ethereum's long-term trajectory despite the short-term volatility. A notable example included a $1.48 million transaction from a wallet originally active during Ethereum's 2014 ICO, underscoring the asset's enduring appeal Ethereum Whale Resurfaces After 10 Years, Moves $1.48 Million^[3].

The market dynamics were further complicated by Ethereum's validator exit queue, which reached a record 2.4 million ETH ($10 billion) awaiting withdrawal. While this raised concerns about potential sell pressure, institutional inflows into spot Ethereum ETFs offset some of the bearish momentum. ETFs added $621 million in October alone, with corporate treasuries now holding approximately 5.68% of the total ETH supply. Analysts noted that institutional demand and staking yields (currently 2.86% APR) could stabilize the market, though the validator exit backlog posed a risk of temporary price retracements toward the $3,800–$4,000 range $10B in Ethereum Awaits Exit as Validators Retreat^[4].

Technical indicators suggested a possible rebound, with Ethereum testing key resistance levels around $4,600–$4,770. The 50-day simple moving average at $4,100 remained a critical support zone, while sustained buying pressure could push prices toward $4,956. However, the market's path forward depended on balancing short-term selling pressures with institutional accumulation and upcoming network upgrades, such as the November 2025 Fusaka upgrade, which aimed to enhance scalability and reduce transaction costs Record $10B in Ethereum Awaits Exit as Validators^[5].