Ether Drops 8% to $1,625, Marking Lowest Level Since April 2025
Ether sank more than 8% on June 5, briefly touching $1,625 before stabilizing near $1,673. The move pushed ETH to its lowest level since April 2025, extending a sharp downturn for a token that traded near $5,000 less than a year ago.
The slide was broad across crypto. Bitcoin fell about 5% in the same session to around $60,800, posting its sixth straight daily decline—its longest losing streak since August 2025.
Privacy coins were hit hardest. Zcash plunged more than 50% after reports pointed to a critical security vulnerability, the token's largest one-day drop since May 2021. Monero also sold off, down as much as 17% over the same period.
Macro headwinds are weighing on ETH. The June 5 selloff came alongside ongoing capital outflows from U.S. spot exchange-traded funds linked to digital assets. Crypto's past tendency to track top-performing tech stocks appears to be fading, with digital assets sliding even as tech equities hold up.
Investor positioning has turned more defensive ahead of key U.S. economic releases and an upcoming Federal Reserve meeting. At the same time, AI-focused sectors are competing for capital as investors rotate toward areas where the narrative and fundamentals appear more aligned.
ETH's decline from its all-time high near $4,954 in August 2025 underscores the shift. From that peak to the June 5 low, the token has fallen roughly 67%.
For investors, ETF flows remain a key signal. While the launch of these products was hailed as a milestone for institutional adoption, persistent outflows indicate many institutions may be using crypto ETFs tactically—reducing exposure when macro conditions worsen—rather than treating them as long-term core holdings.
Zcash's 50% crash also highlights idiosyncratic risk. Unlike macro-driven drawdowns, the move was tied to a project-specific security issue that erased half the token's value within hours, reinforcing that diversification within crypto is not the same as diversification across asset classes.
