Ether plunges and drags altcoin capitalization below 880 billion

The crypto market has turned bright red, like an autopsy table after a poorly anesthetized crash. Bitcoin falls back, altcoins drop, and traders watch their screens with the coldness of a medical examiner. This time, the wound is not local: Ethereum opens the wound, then the entire altcoin segment starts to lose its blood.

In brief

• Ethereum falls nearly 22% over a week, triggering a wave of massive liquidations.
• Altcoin capitalization drops below 880 billion, confirming a strong current loss of confidence.
• About 83% of Binance altcoins remain below their 200-day moving average.
• Zcash collapses after discovery of an old flaw in its protected Orchard system.

Ethereum opens the trap door and altcoins fall in cascade

Ethereum triggered the most visible movement of this correction. On June 5, ETH lost about 10% in twenty-four hours, dropping from just over $1,700 to $1,545. This level had not been seen since April 2025. Over a week, Ethereum is now down by nearly 22%, despite an annual performance still positive.

The shock also affected leverage. About $468 million in positions were liquidated, including $408 million on long positions. Legally speaking, the market simply applied its harshest clause: no margin, immediate liquidation. BNB, XRP, and SOL also declined, but without exceeding a 10% drop. 

However, this relative resistance was not enough. Total altcoin capitalization fell below $880 billion, confirming a clear breach of confidence.

The crypto market shows a weakness established for months

The current drop does not come out of the blue. Since October 2025, altcoins have been trading in a severely degraded technical zone. According to the data shared by Darkfost, 83% of altcoins listed on Binance trade below their 200-day moving average. This threshold often serves as the boundary between a healthy trend and a sick market.

Darkfost summarizes the diagnosis precisely: 

The situation continues to deteriorate for altcoins. This market segment has been struggling since December 2024, with very few signs of a sustainable recovery so far.

Source: X / @Darkfost_Coc

TOTAL3, which measures altcoins excluding Ethereum, falls toward $670 billion. That represents about $520 billion erased since the cycle peak. In this financial autopsy, the cause of death is therefore not a single red candle. It is mainly due to a chronic weakness, visible for several months.

520 billion evaporated: traders still seek the floor

The external context further aggravates the situation. Bitcoin lost nearly 4%, while the S&P 500 fell 2.6% and the Nasdaq 4.7%. Stocks linked to AI and semiconductors weighed heavily on the markets. This macro pressure reduces the appetite for risky assets, including the most fragile crypto products.

Zcash adds a much more technical layer to the malaise. ZEC dropped more than 40%, falling from about $540 to $264.80. This drop is related to an old flaw in the Orchard pool, present since 2022. An emergency patch was deployed, but the damage was already done. Monero regained the top spot in privacy cryptos.

At the same time, some rotations appear. David Hoffman reportedly left Ethereum to reposition on ZEC, HYPE, NEAR, VVV, and LIT. This shows that some investors are still looking for surviving themes.

The figures from the autopsy report

• Ethereum loses nearly 22% over a week;
• Altcoin capitalization fell below $880 billion;
• TOTAL3 drops about $520 billion since its peak;
• Zcash falls more than 40% in twenty-four hours;
• ETH price at the time of writing: $1,557.

Bitcoin, queen of cryptos, is also going through its own debacle. Its drop to $59,100 reminds us that the storm goes beyond Ethereum. When the dominant asset reaches levels unseen since 2024, the entire crypto market understands that the whole body remains under observation.