Ethereum (ETH) has experienced a sharp decline exceeding 20% in June 2025, mirroring a similar price pattern observed in June 2021. Both periods began with ETH trading above $2,600 before undergoing significant crashes toward the $2,000 level. Historical data indicates the current downtrend may not be over yet, with the potential for ETH to fall an additional 20% to a bottom range between $1,600 and $1,700.
Technical indicators suggest this June 2025 downturn is closely following the 2021 template, where ETH's recovery began in July and resulted in an over 200% surge over the next five months, setting new all-time highs and catalyzing a broader altcoin rally. Investors are cautiously optimistic that a similar recovery phase might start in July 2025.
Current geopolitical developments, notably the tension and conflict in the Middle East involving Iran and Israel, have contributed to heightened market volatility and sell-offs in ETH. Military actions such as US bombings of Iranian nuclear facilities intensified the sell-off, pushing ETH down from nearly $2,900 to about $2,260. This has also led to increased dominance of Bitcoin (BTC) as a perceived safer asset, with BTC dominance rising from 54.1% to 64%, while ETH’s market share dropped from 18.2% to 8%.
Technical analysis highlights that ETH has broken below key support levels ($2,380 and $2,320), signaling possible further declines toward $1,800 if it fails to reclaim these supports. Despite some short-term momentum improvements indicated by the Relative Strength Index (RSI), the downtrend may continue after retesting these levels.
The rising Bitcoin dominance is also benefiting new presale projects like Bitcoin Hyper (HYPER), which is developing a layer-2 scaling solution to enhance Bitcoin’s decentralized finance ecosystem by using Solana Virtual Machine technology. HYPER has raised over $1.5 million during its presale, with potential upside as the solution gains adoption among wallets and exchanges.
Overall, Ethereum’s price action and market dynamics in June 2025 combine historical patterns with geopolitical and market pressures, setting the stage for a critical period in the coming months that could lead to a significant price rally mirroring 2021’s altcoin boom.