Ethereum at Max Pain: Institutions Accumulate After the 65% Drop

Ethereum fell over 65% from its peak as institutions accumulated millions of ETH, with prices testing long-term support near $1,700.

Ethereum has faced a sharp market correction after losing more than 65% from its recent peak.

The decline followed a breakdown below the $3,700 price level, which had acted as a strong support zone.

While short-term market pressure increased, institutional activity showed steady accumulation during the downturn.

Ethereum Price Breakdown and Market Movement

Ethereum traded near $3,700 before breaking below the $3,600 support range. After the breakdown, selling pressure accelerated across major exchanges.

The price later moved toward the $1,700 level, which aligned with long-term technical support.

The drop occurred over several months and reflected broader weakness in crypto markets. Trading volumes increased during the decline, while volatility remained elevated.

These conditions pointed to reduced risk appetite among short-term traders.

Market data showed Ethereum testing the 0.618 Fibonacci retracement near $1,700. This level had acted as support in past cycles.

Price action around this zone remained closely watched by market participants.

Institutional Accumulation During the Drawdown

Despite the price decline, institutional exposure to Ethereum continued to rise. U.S.-based Ethereum exchange-traded funds reportedly accumulated around 6 million ETH over an 18-month period.

These holdings were valued near $55 billion at recent market prices.

Corporate accumulation also remained active during the downturn. Bitmine disclosed holdings of about 4.28 million ETH.

The reported value exceeded $13 billion, based on prevailing prices. Other Ethereum-focused firms added to their reserves as well.

Combined institutional and corporate holdings were estimated at nearly 13 million ETH.

This amount represented a notable share of the circulating supply. Accumulation occurred while prices traded far below recent highs.

Related Reading: Ethereum Drops 20%: Is This the Smartest Buy Zone of the Cycle?

Technical Zones and Long-Term Market Positioning

Several accumulation zones were identified based on historical price behavior. The $2,000 to $1,800 range saw buying activity as Ethereum approached lower support levels.

This zone aligned with prior consolidation periods.

A deeper range between $1,400 and $1,270 remained under observation. This level matched the 0.786 Fibonacci retracement from the previous cycle high.

Similar levels have acted as support during earlier market declines.

Analysts noted that further downside remained possible before any trend reversal. Long-term participants focused on gradual entry strategies and extended time horizons.

Market attention remained on price stability near established technical levels.

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