Why Is Ether Struggling Near $2,400 Even as More Firms Add ETH to Their Treasuries?
Ether (ETH) experienced a price decline on July 1st, reaching $2,418.39, driven by a broader crypto market selloff and heightened political uncertainty in the U.S. CoinDesk Research’s technical analysis indicates a 3.3% drop in the past 24 hours, from $2,500.88, with the lowest point reaching $2,404.47. This downturn follows a public dispute between Elon Musk and Donald Trump regarding Trump’s proposed “One Big Beautiful Bill,” sparking investor concerns about fiscal policy, energy markets, and regulatory stability. The overall crypto market capitalization decreased by 4.1% in the same period, according to CoinGecko.
Despite the price pressure, institutional interest in ETH remains strong. SharpLink Gaming (SBET), now the world’s largest publicly traded ETH holder, added 9,468 ETH ($22.8 million) to its holdings, bringing its total to 198,167 ETH. This acquisition was funded by a $24.4 million capital raise. SharpLink’s chairman, Joseph Lubin, co-founder of Ethereum, emphasizes ETH’s role as a strategic currency for the digital economy, rather than solely a speculative asset.
Furthermore, BitMine (BMNR) announced a $250 million private placement to build its ETH treasury, with participation from prominent investors such as Pantera, Founders Fund, Galaxy Digital, Kraken, and DCG. The company plans to utilize ETH in staking and DeFi protocols, highlighting Ethereum’s dominance in stablecoins and smart contracts. This strategic move, along with SharpLink’s actions, signals a growing institutional adoption of ETH as a treasury reserve asset.
Technically, ETH’s price broke below the $2,460 support level, triggering sustained downward pressure. Recovery attempts stalled near $2,430, with resistance around $2,445. The bearish trend persists, characterized by lower highs and lower lows, lacking clear volume-based reversal indicators. The price range between $2,425 and $2,418 during 20:01 and 21:00 UTC, on declining volume, suggests potential short-term exhaustion. However, the overall trend remains bearish.
