Ether Drops 3.3% Amid Political Volatility and Institutional Buying

Ether (ETH) experienced a significant decline on July 1, dropping to $2,418.39, marking a 3.3% decrease over the past 24 hours. This downturn was driven by persistent selling pressure, which caused the cryptocurrency to break through key support levels around $2,460. The broader crypto market also faced a selloff, with the total market capitalization declining by 4.1% over the same period. This market weakness was largely attributed to renewed political volatility in the U.S., stemming from a high-profile dispute between Elon Musk and Donald Trump over the latter's tax-and-spending plan, dubbed the “One Big Beautiful Bill.” Musk criticized the legislation for its potential to deepen the national debt and harm employment, while Trump responded with personal attacks, accusing Musk of opposing the bill for self-interested reasons related to Tesla’s lost subsidies. This feud has heightened investor concerns around fiscal policy, energy markets, and regulatory stability, all of which have historically influenced crypto valuations.

Despite the market turmoil, several companies have announced plans to increase their ETH holdings. On July 1, SharpLink Gaming disclosed the acquisition of an additional 9,468 ETH, worth $22.8 million, between June 23 and June 27. This brings SharpLink's total ETH holdings to 198,167, solidifying its position as the world’s largest publicly traded holder of Ethereum. The company's chairman, Joseph Lubin, who also co-founded Ethereum, emphasized that ETH is being embedded at the center of SharpLink's balance sheet as part of a broader push to align with the digital economy. Lubin framed Ethereum not as a speculative asset, but as a “strategic currency” for the future of digital commerce.

The previous day, BitMine announced a $250 million private placement to fund an Ethereum treasury strategy. The deal, expected to close by July 3, includes major backers such as Pantera, Founders Fund, Galaxy Digital, Kraken, and DCG. BitMine plans to designate ETH as its primary treasury reserve asset and deploy it in staking and DeFi protocols. Chairman Thomas Lee highlighted Ethereum’s dominance in stablecoins and smart contracts, while CEO Jonathan Bates said the company will partner with FalconX, BitGo, and Fidelity Digital to expand its holdings. These developments reflect a broader shift in institutional attitudes toward Ethereum’s role in treasury management, even as ETH price action remains under pressure.

Technical analysis of ETH's price action on July 1 revealed a bearish trend structure, with lower highs and lower lows and no clear volume-based reversal indicators. The cryptocurrency declined 3.3% over the past 24 hours, falling from $2,500.88 to $2,418.39, with a full-range swing of $96.41. The price broke below the $2,460 support level during the 04:00 UTC hour, triggering sustained downside pressure. The steepest decline occurred during the 14:00 UTC hour, when ETH briefly dipped to $2,404.47 amid the session’s highest volume. Recovery attempts throughout the day stalled near $2,430, with resistance forming around $2,445. Between 20:01 and 21:00 UTC, ETH ranged from $2,425 to $2,418 on declining volume, suggesting possible short-term exhaustion. Despite these technical indicators, the broader institutional trend toward increasing ETH holdings suggests that the cryptocurrency may continue to play a significant role in treasury management strategies.