Ether Drops 3.3% to $2,418 Amid Heavy Selling and Political Turmoil

Ether (ETH) slipped to $2,418, down 3.3% over 24 hours, as sellers overwhelmed support near $2,460 during a period of elevated trading volume.

According to CoinDesk Research’s technical analysis, ETH faced renewed downward pressure on July 1, ending a day of consistent losses with a decline from around $2,500 to $2,418.39.

The drop in Ether’s price coincided with a broader selloff across the cryptocurrency market. Data from CoinGecko shows the total crypto market capitalization fell by 4.1% in the last day, largely fueled by fresh political tensions in the United States.

This market unease traces back to a highly publicized dispute between Elon Musk and former President Donald Trump over Trump’s ambitious tax-and-spending proposal, nicknamed the “One Big Beautiful Bill.” Musk labeled the legislation “utterly insane,” warning it could add $5 trillion to the national debt, undo clean energy incentives, and hamper job growth. He also vowed to campaign against Republican senators backing the bill.

Trump retaliated with personal attacks, controversially suggesting Musk be deported despite his U.S. citizenship and accusing him of opposing the bill due to Tesla’s loss of subsidies. This clash has heightened investor fears around fiscal policy, energy regulations, and economic stability — factors that have historically impacted crypto prices.

Despite the uncertainty weighing on ETH’s price, institutional interest in Ethereum as a treasury asset continues to grow. On Tuesday, SharpLink Gaming (Nasdaq: SBET) announced it purchased an additional 9,468 ETH — valued at $22.8 million — between June 23 and June 27. This brings its total Ethereum holdings to 198,167, making it the largest publicly traded company holding ETH. Most of the funds were raised through a $24.4 million at-the-market offering.

SharpLink’s Chairman Joseph Lubin, a co-founder of Ethereum, described the company’s strategy as positioning ETH at the core of its balance sheet. He emphasized viewing Ethereum not merely as a speculative asset but as a “strategic currency” aligned with the emerging digital economy.

The day before, BitMine (NYSE American: BMNR) revealed a $250 million private placement aimed at expanding its Ethereum treasury. Supported by prominent investors including Pantera, Founders Fund, Galaxy Digital, Kraken, and DCG, the deal is expected to close by July 3. BitMine intends to use ETH as its primary reserve, deploying it across staking and decentralized finance (DeFi) protocols. Chairman Thomas Lee cited Ethereum’s leadership in stablecoins and smart contracts as a key reason, while CEO Jonathan Bates highlighted partnerships with FalconX, BitGo, and Fidelity Digital to grow their ETH assets.

These developments underline a growing institutional embrace of Ethereum as a treasury asset — even as short-term price pressures persist.

Technical Summary:

• ETH fell 3.3% in 24 hours, sliding from $2,500.88 to $2,418.39, with price swinging a full $96.41.
• The $2,460 support level was breached during the 04:00 UTC hour, triggering persistent selling pressure.
• The steepest drop occurred around 14:00 UTC, when ETH briefly hit $2,404.47 amid the day’s heaviest volume of 379,855 ETH.
• Attempts to recover 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, possibly signaling short-term exhaustion.
• The bearish trend remains intact, characterized by lower highs and lows, with no clear signs of reversal based on volume.