Ether (ETH) drops to $1,625, lowest since April 2025

The price of Ether (ETH) , the second-largest cryptocurrency by market capitalization, dropped by 8% in 24 hours to settle at 1,625 USD on June 6, 2026. This level had not been seen since April 2025, marking a significant decline in a context of generalized correction in the cryptocurrency market. Investors are adopting a more cautious approach toward high volatility assets, while Ether, with an estimated market capitalization between 250 and 300 billion dollars, remains a cornerstone of the DeFi ecosystem and Layer 2 (L2) solutions. However, this drop raises questions about the ability of Ethereum protocols to withstand massive liquidation pressures. What Happened Ether lost 8% in a single day, falling to 1,625 USD , a level 30% lower than its May 2026 peak, estimated at around 2,300 USD. This decline coincides with an increase in gas fees on the Ethereum network, with a base fee at 0.170321416 gwei, making transactions more expensive for users. Additionally, massive liquidations on Ethereum reached 547 million USD in 24 hours, according to on-chain data confirmed by multiple analysts. Despite this correction, some DeFi protocols still show residual activity. For example, Uniswap v3 (WETH-USDC pair) offers an APY of 327.5% with a TVL of 91.2 million USD , illustrating persistent network usage. Meanwhile, ETH holders see their exposure depreciate, with market capitalization declining and trading volume rising, estimated at several billion dollars per day. Why This Matters The decline in Ether is part of a broader crypto market correction, where high volatility assets face selling pressure. Several factors explain this trend: The massive liquidations amplify the decline, particularly on leveraged positions in protocols like Aave or Compound . The increase in Ethereum gas fees may indicate network congestion or reduced smart contract activity, two factors that weigh on Ether’s valuation. Layer 2 networks like Arbitrum , Optimism , or Base could benefit from this correction, as users seek cheaper alternatives for interacting with DeFi. In the medium term, the potential approval of Ethereum Spot ETFs could bring stability to the market, although this information is not confirmed in available sources. Technically, Ether depends on several key indicators: smart contract activity, protocol updates (such as Dencun in 2024), and liquidation dynamics. A drop below the 1,650 USD threshold could trigger further sales, especially if liquidations continue at a high rate. DeFi protocols like Uniswap , Curve , or Lido could see their TVL decline, reducing revenue for liquidity providers and stakers. What to Watch Several indicators could shed light on the future evolution of Ether and the Ethereum ecosystem: On-chain data published by platforms like Glassnode or Nansen could reveal ETH accumulation by “whales” or a reduction in exchange reserves, two signals often associated with potential rebounds. The reaction of L2 networks: if protocols like Arbitrum (ARB) or Optimism (OP) see their TVL increase, this could indirectly support Ether’s price in the medium term. The impact of Ethereum ETFs: their approval, if it occurs in 2026, could bring new dynamics to the market, although flows largely depend on institutional investor confidence. The correlation with traditional markets: a prolonged decline in Ether could influence tech assets, particularly the Nasdaq, due to growing links between cryptocurrencies and financial markets.