Ethereum on June 3, 2025: Market Trends and Impact of New Upgrades

Ethereum faces selling pressure, but new upgrades and capital inflows may boost its bullish trend.

Ethereum, the second-largest cryptocurrency by market cap, is trading around $2,600 as of June 3, 2025, reflecting a 2.6% daily decline but a 46% monthly gain—the first positive month in 2025. This growth is driven by institutional capital inflows and whale activity. A key factor influencing Ethereum is the launch of the Protocol project, which focuses on scaling Layer 1, expanding blobspace, and improving user experience. This upgrade aims to strengthen Ethereum’s ecosystem and could enhance its competitiveness against rival blockchains like Solana. Analysts believe these improvements may boost investor confidence and network performance. However, Ethereum faces bearish pressures. Geopolitical tensions, particularly U.S. tariff threats against the EU and Apple, have impacted the broader crypto market. Additionally, the Federal Reserve’s tight monetary policies continue to weigh on high-risk assets like Ethereum. Technical analysis shows Ethereum consolidating between $2,461 and $2,724, with a breakout above $2,750 potentially paving the way to $3,000. Institutional investment in Ethereum ETFs is a positive driver, with $321 million in inflows reported last week, signaling growing confidence. Meanwhile, Bitcoin’s dominance dropping below 70% suggests the start of an altcoin season, with Ethereum poised to lead. For investors, the current strategy involves buying at support levels between $2,460 and $2,500 while awaiting bullish signals. A break above $2,750 could drive Ethereum toward $3,000 in June. However, macroeconomic risks, such as Federal Reserve policies and trade tensions, remain critical considerations. In conclusion, Ethereum is at a pivotal moment. While short-term pressures may cap its price, protocol upgrades and institutional support could fuel long-term growth. Investors should monitor Federal Reserve developments and protocol updates closely, using technical analysis to identify optimal entry points.