Today, June 5th, 2025, Ethereum (ETH) experienced a sharp drop, falling by 7.90% to $2,399.34 — its lowest level since May 18th (morningstar.com). This correction is part of a broader crypto market decline that also affected Bitcoin (BTC) and XRP

Several factors contributed to the downturn. Massive liquidations triggered forced sales of long positions, increasing downward pressure. In addition, tensions between high-profile figures like Elon Musk and Donald Trump added to market uncertainty. Finally, whale investors dumped large volumes of crypto, flooding the market with supply.

Despite the drop, there are still positive signs. Institutional investors such as Consensys have accumulated over 300,000 ETH—worth around $778 million—since early June. This accumulation reflects ongoing confidence in Ethereum’s long-term potential.

Technically, Ethereum is currently in a demand zone between $2,378 and $2,454, providing potential support. However, indicators such as the RSI and MACD show short-term bearish momentum, with a possible move down to $2,420 if selling pressure persists.

In summary, while Ethereum faced a significant dip today, its fundamentals remain solid—supported by institutional interest and key technical support zones. Still, investors should remain cautious in the face of ongoing market volatility.