Ether Near $2,400: Why Is the Price Struggling Despite Growing Institutional Interest?

Ether Drops 3.3% to $2,418 Amid Strong Selling and Political Uncertainty

Ether (ETH) slid to $2,418, experiencing a 3.3% decline over 24 hours after failing to hold the $2,460 support level during a wave of heavy selling.

CoinDesk Research’s analysis showed that ETH encountered increased downward pressure on July 1, steadily falling from about $2,500 to $2,418.39.

This decline mirrored a wider drop in the cryptocurrency market, with total market capitalization falling 4.1%, largely due to escalating political tensions in the United States.

The selloff followed a public dispute between Elon Musk and former President Donald Trump over Trump’s comprehensive tax and spending proposal, known as the “One Big Beautiful Bill.” Musk called the plan “utterly insane,” warning it would add $5 trillion to the national debt, roll back clean energy incentives, and hurt employment. He also vowed to campaign against Republican senators supporting the bill.

Trump responded with personal attacks, suggesting Musk be deported despite his U.S. citizenship and accusing him of opposing the bill due to Tesla’s loss of subsidies. This spat increased investor anxiety over fiscal policy, energy regulations, and economic stability—all factors that historically impact crypto prices.

Despite downward price pressure, institutional interest in Ethereum remains strong. On Tuesday, SharpLink Gaming (Nasdaq: SBET) announced it acquired an additional 9,468 ETH worth $22.8 million between June 23 and 27, bringing its total ETH holdings to 198,167—making it the largest publicly traded company holding Ethereum. The purchase was primarily funded by a $24.4 million at-the-market offering.

SharpLink Chairman Joseph Lubin, Ethereum co-founder, emphasized the company is positioning ETH at the core of its balance sheet, viewing it as a “strategic currency” essential to the digital economy rather than a speculative asset.

The day prior, BitMine (NYSE American: BMNR) revealed a $250 million private placement to grow its Ethereum treasury. Supported by major investors including Pantera, Founders Fund, Galaxy Digital, Kraken, and DCG, the deal is expected to close by July 3. BitMine plans to make ETH its main treasury reserve, deploying it across staking and DeFi protocols. Chairman Thomas Lee cited Ethereum’s dominance in stablecoins and smart contracts, while CEO Jonathan Bates mentioned partnerships with FalconX, BitGo, and Fidelity Digital to increase their ETH holdings.

These moves reflect growing institutional confidence in Ethereum as a treasury asset despite recent price weakness.

Technical Highlights:

• ETH declined 3.3% over 24 hours, dropping from $2,500.88 to $2,418.39, within a price range of $96.41.
• The $2,460 support level broke during the 04:00 UTC hour, triggering continued selling pressure.
• The largest price drop occurred at 14:00 UTC, with ETH dipping to $2,404.47 amid the day’s highest volume of 379,855.
• Attempts to recover stalled near $2,430, facing resistance around $2,445.
• Between 20:01 and 21:00 UTC, ETH traded between $2,425 and $2,418 on declining volume, possibly signaling short-term exhaustion.
• The bearish trend remains intact with lower highs and lows, and no clear reversal signals based on volume.