Ethereum’s price has experienced a significant drop below the $2,900 mark, contributing to a wider market downturn and raising concerns about institutional sell-offs. Major players like FG Nexus have sold substantial amounts of ETH, indicating strategic adjustments in portfolio management. 10,922 ETH worth over $32 million was sold, driven by mNAV considerations, suggesting a shift towards risk mitigation strategies. This decline has led to increased bearish sentiment and wider market impacts, affecting major altcoins like Bitcoin and XRP. The downturn has also triggered increased put options activity, signaling a protective strategy against potential further losses. Institutional investors are actively adjusting their strategies, leading to substantial ETF outflows. Long-term implications involve institutional treasuries seeking to balance risk while potentially mitigating future downturns. Experts suggest that recovery might be possible if strategic support levels remain intact.