Ethereum Surges Past $4,100 as Institutional Dip-Buying Frenzy Ignites
Wall Street finally discovers what crypto natives knew all along—buying the dip actually works.
The Institutional Floodgates Open
Smart money isn't just dipping toes anymore—they're diving headfirst into ETH accumulation. While retail investors panic-sold during recent volatility, institutions deployed capital at levels not seen since the 2021 bull run. The $4,100 reclaim marks a psychological victory that's triggering algorithmic buying programs across major funds.
Ethereum's Infrastructure Advantage
Unlike newer Layer 1 competitors, Ethereum's battle-tested network and established DeFi ecosystem provide the institutional comfort missing elsewhere. The merge to proof-of-stake eliminated environmental concerns that previously kept pension funds and endowments on the sidelines. Now they're making up for lost time—because nothing moves slower than a billion-dollar fund chasing 100% returns.
Regulatory Tailwinds Build
With ETF approvals looking increasingly inevitable, traditional finance players are positioning ahead of the herd. They've learned from Bitcoin's ETF rollout—early accumulators captured the biggest gains while latecomers paid the premium. This time, they're not making the same mistake with Ethereum.
The $4,100 breakthrough signals more than just price recovery—it represents the moment institutions stopped treating crypto as speculation and started treating it as allocation. Though given Wall Street's track record, they'll probably claim they invented decentralized finance next.
Ethereum’s Coinbase Premium hits 2025 high
As global markets were selling off during the weekend flash crash, an unusual divergence emerged between U.S. onshore demand and activity on international platforms.
According to an Oct. 13 analysis by CryptoQuant contributor CryptoOnChain, Ethereum’s Coinbase Premium Index, which tracks the price difference between Coinbase and Binance, surged to +6.0, the highest reading this year.
Usually, panic-driven sell-offs turn this indicator negative as U.S. traders sell at discounts. But this time, the premium flipped sharply positive, suggesting that institutional and U.S.-based investors were buying aggressively while others were fleeing.
CryptoOnChain noted that the move reflects “institutional dip-buying at scale.” Many of these large investors appear to view Ethereum’s pullback as a buying opportunity, not a reason to exit. The trend aligns with continued inflows into spot ETH exchange-traded funds, most of which use Coinbase as their custodian, further explaining the strong U.S. buying pressure.
Historically, spikes in the Coinbase Premium have often preceded major price recoveries. Similar movements were seen in November 2024 during the Ethereum ETF launch and again in mid-2025 when U.S. whales accumulated ahead of expected rate cuts. Each time, ETH prices rallied 20–40% in the following weeks.
Ethereum price technical analysis
Ethereum’s chart suggests the market is stabilizing after the flash crash. The relative strength index sits around 46, showing neutral momentum. Most short-term moving averages (10–50 day) hover slightly above current prices, acting as resistance.
Meanwhile, longer-term averages (100–200 day) remain supportive, reflecting underlying strength. Key resistance for ETH is currently located between $4,250 and $4,450.
If inflows persist, a clear break above this range might pave the way for a move toward $4,600 or even $5,000. Strong support for the downside is located between $3,700 and $3,900, where the 100-day average and lower Bollinger Band converge.
