Ethereum’s (ETH) price declined 3.3% on July 1, closing at $2,418.39 after a day of steady losses, according to CoinDesk Research’s technical analysis.
This drop occurred during a broader cryptocurrency market downturn, with total market capitalization falling 4.1% over 24 hours, influenced by heightened political uncertainty in the U.S.
The market instability followed a public dispute between Elon Musk and former President Donald Trump over a proposed tax-and-spending plan called the “One Big Beautiful Bill.” Musk criticized the bill, stating it would increase the national debt by $5 trillion and undermine clean energy incentives, while also threatening political opposition to its supporters. Trump responded with personal attacks, further fueling investor concerns about fiscal policies, energy markets, and regulatory risks that historically impact crypto prices.
Despite price pressure, institutional interest in Ethereum as a treasury reserve asset is growing. SharpLink Gaming (Nasdaq: SBET) announced it purchased 9,468 additional ETH, worth $22.8 million, between June 23 and 27, increasing its total holdings to 198,167 ETH. The majority of these funds came from a $24.4 million capital raise through an at-the-market facility. SharpLink’s chairman, Joseph Lubin—also an Ethereum co-founder—described ETH as a strategic currency central to the digital economy rather than a speculative investment.
Similarly, BitMine (NYSE American: BMNR) revealed a $250 million private placement to support an Ethereum treasury strategy. The funding round, expected to close by July 3, includes investors such as Pantera, Founders Fund, Galaxy Digital, Kraken, and DCG. BitMine plans to hold ETH as its primary treasury asset and utilize it for staking and decentralized finance (DeFi) operations. Chairman Thomas Lee emphasized Ethereum’s role in smart contracts and stablecoins, while CEO Jonathan Bates noted partnerships with FalconX, BitGo, and Fidelity Digital to expand ETH holdings.
These moves illustrate a growing institutional shift toward integrating Ethereum into treasury management, even as ETH prices face downward pressure.
Technical Analysis Summary:
- ETH price fell from $2,500.88 to $2,418.39 within 24 hours, a 3.3% decline with a $96.41 price range.
- Price breached the $2,460 support level around 04:00 UTC, intensifying the downward trend.
- The heaviest decline occurred at 14:00 UTC when ETH dipped to $2,404.47 amid the highest trading volume of 379,855.
- Recovery efforts stalled near $2,430, with resistance forming around $2,445.
- Between 20:01 and 21:00 UTC, ETH traded between $2,425 and $2,418 on declining volume, indicating potential short-term exhaustion.
- The bearish trend remains intact, characterized by lower highs and lows, with no clear signs of reversal based on volume analysis.
Disclaimer: Parts of this article were generated with AI assistance and reviewed by the editorial team for accuracy and compliance with CoinDesk’s standards.