What’s Holding Ether Back Near $2,400 Even as More Companies Boost Their ETH Reserves?

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

Ether (ETH) fell sharply to $2,418, losing 3.3% within 24 hours after failing to hold the $2,460 support level amid heavy selling pressure.

CoinDesk Research’s technical model showed that ETH faced increased downward momentum on July 1, ending the day with consistent losses from about $2,500 to $2,418.39.

This decline coincided with a broader downturn in the crypto market, where overall market capitalization dropped 4.1%, largely influenced by rising political tensions in the U.S.

The selloff was partly driven by a public clash between Elon Musk and former President Donald Trump regarding Trump’s extensive tax-and-spending plan called the “One Big Beautiful Bill.” Musk criticized the bill as “utterly insane,” arguing it would add $5 trillion to the national debt, reverse clean energy initiatives, and hurt employment. He also threatened to oppose Republican senators who support the bill.

Trump fired back, attacking Musk personally by suggesting deportation despite Musk’s U.S. citizenship and accusing him of self-interest linked to Tesla’s lost subsidies. This feud has increased investor worries over fiscal policy, energy regulation, and economic stability—factors that typically affect crypto markets.

Despite short-term price pressure, institutional interest in Ethereum is rising. On Tuesday, SharpLink Gaming (Nasdaq: SBET) announced it had purchased an additional 9,468 ETH worth $22.8 million between June 23 and 27. This brings its total ETH holdings to 198,167, making it the largest publicly traded company holder of Ethereum. The purchase was largely funded by a $24.4 million capital raise through an at-the-market facility.

SharpLink Chairman Joseph Lubin, a co-founder of Ethereum, stated that the company is making ETH central to its balance sheet strategy. He described Ethereum not as a speculative investment but as a “strategic currency” critical for the digital economy’s future.

The previous day, BitMine (NYSE American: BMNR) disclosed a $250 million private placement to expand its Ethereum treasury. Supported by 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 asset, deploying it in staking and DeFi platforms. Chairman Thomas Lee pointed to Ethereum’s dominance in stablecoins and smart contracts, while CEO Jonathan Bates highlighted partnerships with FalconX, BitGo, and Fidelity Digital to increase holdings.

Together, these moves reflect growing institutional confidence in Ethereum’s role as a treasury asset despite recent price weakness.

Technical Highlights:

• ETH dropped 3.3% over 24 hours, from $2,500.88 to $2,418.39, with a price range of $96.41.
• Support at $2,460 broke during the 04:00 UTC hour, triggering sustained selling.
• The largest decline happened at 14:00 UTC, with ETH dipping to $2,404.47 amid peak volume of 379,855.
• Recovery efforts failed near $2,430, facing resistance at around $2,445.
• From 20:01 to 21:00 UTC, ETH traded between $2,425 and $2,418 on declining volume, possibly indicating short-term exhaustion.
• The bearish trend remains intact, with lower highs and lows and no clear reversal signs based on volume.

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