Latest market data

Figure:https://www.gate.com/trade/ETH_USDT

• Ethereum Price: $2,452.67 (Gate trading pair ETH/USDT)
• 24h High / 24h Low：$2,640.91 / $2,383.45
• 24h fall: -6.58%
• 24h trading volume (ETH): 217.08K
• 24h Trading Volume (USDT): $544.60M

As of noon on June 6, 2025, the Ethereum Price recorded $2,452.67, significantly falling from the yesterday’s high of $2,640.91, with the overall market capitalization and trading volume also declining significantly due to emotional fluctuations. This round of sharp fall totaled nearly 6.58%.

Price Rapid Fall Review

1. early trend

- At the end of May to early June, the Ethereum Price once attempted to break through the $2,700 resistance level, mainly fluctuating slightly for several days, reaching a high of $2,640.91 but failing to continue the upward attack.

1. fall process

- On June 6th at around 02:00, the price suddenly plummeted from near $2,600, with a drop of over 10% within an hour, reaching a low of about $2,383. Although there was a technical rebound afterwards, the closing price for the day still settled at $2,452.67.

1. Trading volume and sentiment changes

- During the sudden fall, short-term selling pressure was集中释放, and the 24h trading volume surged to 217.08K ETH, indicating that large holders are taking profits and market panic sentiment is spreading.

How the conflict between Trump and Musk affects the market

1. Event Review

- On the evening of June 5, 2025, former U.S. President Donald Trump posted on his social platform "Truth Social" accusing Elon Musk (current CEO of X) of "profiting from user data" and claimed that "the cryptocurrency market is manipulated by Musk."
- Later that night, Musk immediately retaliated on the X platform: "Trump has a lack of understanding of cryptocurrency; if he wants to talk, then come up with data." The "mutual tearing" between both parties quickly sparked heated discussions on social media, with a surge in discussions on Twitter and the X platform.

1. Market sentiment transmission

- Influence of social media platforms: Both Trump and Musk have tens of millions of followers. If the two engage in a public "tit-for-tat," it will have a direct impact on confidence in the crypto market. Most ordinary investors will worry that the so-called "big shots' game" will bring about public opinion risks, leading to a collective stampede.
- Musk's Relationship with Cryptocurrency: Musk has always had a certain influence in the crypto space, as he has previously "tweeted" to drive short-term surges or falls in cryptocurrencies such as Bitcoin and Dogecoin. This statement has also raised concerns among investors about "whether Musk will release negative signals," leading to a panic of uncertainty regarding the entire crypto asset market.
- Trump "smeared" cryptocurrency: Trump has always held a reserved and even resistant attitude towards cryptocurrency. His recent accusations have raised doubts among some investors who were originally optimistic: Will the U.S. government increase regulation on cryptocurrency? If it is indeed "manipulated" as Trump claims, it could create negative expectations regarding project compliance and investment security.

1. The psychological and capital market connection

- Panic sentiment spreads: During the peak period of social media traffic in the early hours of June 6, panic selling continuously generated large market sell orders, creating a technical gap that accelerated the fall.
- Margin call pressure: Short-term leveraged traders may be forced to liquidate within a fall of 5% to 10%, further amplifying the decline. This is especially true after the price breaks below $2,500 from above $2,600, triggering a large number of long stop-loss orders.

Other technical and sentiment factors

1. Network upgrade progress has slowed down.

- The Pectra upgrade was originally expected to improve Ethereum's scalability and gas fee issues. If it progresses smoothly, the market will welcome a wave of "bull market sentiment." However, as of early June, the upgrade testnet still frequently experiences lags, and the mainnet launch has been postponed again, raising concerns about future liquidity and user activity.
- The slowdown in technological progress means that there is no way to boost prices in the short term through upgrades, becoming a secondary catalyst for the fall.

1. Changes in the macroeconomic and regulatory environment

- In early June 2025, although inflation in the United States stabilized, the global geopolitical situation remained tense, and market risk aversion increased. Funds flowed conservatively into conventional assets (such as stocks and bonds), while emerging assets like cryptocurrencies were naturally marginalized.
- At the same time, the U.S. Congress is discussing the "Decentralized Finance Regulatory Act," with some lawmakers expressing a desire to intensify regulation of stablecoins and DeFi platforms, bringing more uncertainty to investors.

1. Hot money flow

- After the heated discussions on social media, some retail investors encountered false rumors such as "Trump targets crypto" and "Musk may sell Bitcoin" on social platforms, leading to a large amount of emotional sell-offs.
- In contrast, institutional funds are relatively rational; they took advantage of the short-term fall to accumulate positions near $2,400, but due to limited holdings, they were unable to quickly narrow the decline.

How can beginners follow Ethereum Price

1. Real-time monitoring of “emotional risk”

- Hot topics on social media platforms (such as "Trump criticizes Musk") may amplify market volatility in a short period. Newcomers must pay moderate attention to official channels and mainstream media reports, and not let unverified "rumors" influence their decisions.

1. Pay attention to major upgrade nodes

- If there are official announcements regarding the core upgrade processes such as Pectra and Dencun, they will become important support or turning points for the price. It is recommended to pay close attention around the time of the official Ethereum Foundation announcement or the Github Release.

1. Combining technical and capital aspects

- Set a reasonable stop-loss level: If the purchase cost is around $2,500, consider setting the stop-loss level at around $2,350 to prevent being washed out by sudden negative news.
- Combine trading volume with market changes: if there is a rapid sell-off of large orders, it is advisable to wait and observe, rather than blindly chasing lows or highs.

1. Make long-term plans

- For beginners, it is crucial to avoid chasing spikes and dips in the short term. If you believe in the long-term value of the Ethereum ecosystem, you could adopt a "dollar-cost averaging" strategy, such as investing a fixed amount weekly or monthly to reduce timing risks.

Risk Warning

• The cryptocurrency market is highly volatile, and trending discussions on social media can quickly translate into market sentiment. It is advised that newcomers exercise caution.
• If the technical upgrade progress is delayed again, it will hit the short-term confidence in the Ethereum ecosystem.
• The U.S. regulatory policies are still evolving, and if stricter regulatory measures are introduced or additional unfavorable terms “targeting the crypto industry” emerge, it may put pressure on Ethereum Price again.

Summary

On June 6, 2025, the Ethereum Price fell from $2640.91 to $2452.67, primarily triggered by the “feud” between Trump and Musk on social media, which caused panic in the market, compounded by delays in technical upgrades and macro regulatory concerns, resulting in significant short-term volatility.

For beginners, it is essential to remain vigilant, closely monitor social trends and official announcements, set reasonable stop-loss and take-profit levels, and use regular investment strategies to reduce risk, so as to progress steadily amidst fluctuations.