The reason for the price droping is that there are more sellers than buyers. That is how price is determined. We cannot know what the decision of each seller was by looking into all of their heads to find out what the reason to sell was in each single instance. So any reason put forward is a narrative, a belief about why 1,000s of people (or bots?) sold. It has nothing to do with reality. Better to stop looking for a reason if you know that it will be just a story.

That leaves the question whether it is wise to step into Ethereum at this stage. That depends on your time frame (day trader or long term investor), your expectations for this coin and your ability to withstand and desire to run, risks.

I could imagine that you wait for a bounce in price first and pick up some only after the second dip approaches the area of the first bounce. But you could miss the bottom if prices do not go down a 2nd time anymore after the bounce.

Choices, choices......