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When the Germans invaded the USSR, they had control of all of Western Europe, and a large amount of Northern Africa. In the beginning, they were dominating the USSR and cruised through the Western part of their country.
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During WWII, one of the main reasons for the German downfall was the fact that they could not produce as much weaponry as the Allies, with the US single-handedly out-producing them.
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Another big reason for the German downfall was the number of war fronts that they were involved in at once and it stretched their supply lines too long which forced them to have to slow down the attack in Russia.
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The USSR had many more troops and artillery than the Germans had which meant that the USSR could build up their defense and defend against German attacks. This also meant every time the USSR would lose a tank or a soldier they would just send out more.
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The US, Great Britain, France, and the CCS(Supreme military staff for the US and Britain) were at the Casablanca Conference, and this was the start of the Alliance. They met to talk about bombing German cities which would severely lower German morale.
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Fascist leader Benito Mussolini was voted out of power by his own Grand Council. Italy surrendered to the US a month and a half later which meant the Germans had to divert forces to Italy, which would stretch their resources thin.
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By the end of 1943, most Germans knew the war was lost as their cities continued to be bombed by the Allies. This slowed down German arms production, which was devastating at this point in the war. Furthermore, German people would stay locked in their houses and try to find any food scraps that they could.
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By this point, the USSR was pushing through to Germany from the East, the Allies from the West, and The United States from the South. This meant that the war was basically over and Berlin might soon be captured, which meant Germany had been pushed back inside their own country.
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Adolf Hitler and his wife, Eva Braun, committed suicide in a German Bunker. The Allies had almost defeated the Germans and Hitler did not want to face the Allies so he killed himself, which meant the Germans had no leader.
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Germany surrendered to the Allies days after Hitler died, which meant that the only country that was still fighting against the Allies was Japan and that World War II was over in Europe. V.E. Day was celebrated the day after in honor of the war being over in Europe.