Ether’s price has hit a snag, dipping to $2,418.39 on July 1, amid a broader cryptocurrency market slump. This slide comes as political tensions in the U.S. have escalated, unsettling investors and sending ripples through the digital asset landscape.
The Political Quagmire
The crypto market’s turbulence is partly attributed to a fiery clash between Elon Musk and Donald Trump over the latter’s ambitious tax-and-spending proposal, called the “One Big Beautiful Bill.” Musk, never one to mince words, slammed the legislation as “utterly insane,” predicting it could balloon the national debt by $5 trillion, backtrack on clean energy initiatives, and undermine job creation. His comments have not only put Republican senators supporting the bill on notice but have also fueled uncertainty about U.S. fiscal policy and its implications for the energy sector.
Trump, known for his combative responses, didn’t hold back either. He retaliated with a personal jab, suggesting Musk should be deported, despite Musk’s U.S. citizenship, and accused him of opposing the bill for Tesla’s financial gains. This public spat has rattled investors, exacerbating fears about the fiscal and regulatory stability that are crucial to crypto valuations.
Institutional Interest in Ethereum
Yet, amid the market’s stormy waters, a growing roster of companies is fortifying its balance sheets with Ethereum. Just this past Tuesday, SharpLink Gaming announced a significant acquisition of 9,468 ETH, valued at $22.8 million, between June 23 and June 27. This purchase cements SharpLink’s status as the largest publicly traded Ethereum holder, with an eye-popping total of 198,167 ETH. Chairman Joseph Lubin, who also co-founded Ethereum, emphasized their strategic vision, framing ETH not as mere speculation but as a cornerstone for future digital commerce.
And SharpLink isn’t alone. BitMine also signaled its intent to embrace Ethereum through a $250 million private placement aimed at funding an Ethereum-centric treasury strategy. The deal, backed by industry heavyweights like Pantera and Galaxy Digital, is set to close by July 3. BitMine plans to leverage ETH for staking and DeFi protocols. Chairman Thomas Lee underscored Ethereum’s pivotal role in stablecoins and smart contracts, while CEO Jonathan Bates announced partnerships with FalconX and others to bolster their holdings. This follows a dramatic rise in BitMine’s stock, as detailed in our recent coverage of BitMine’s financial maneuvers.
Technical Hurdles and Market Dynamics
Despite the enthusiasm from corporate treasuries, Ethereum’s market movements remain under pressure. The technical analysis highlights a 3.3% dip, with prices sliding from $2,500.88 to $2,418.39. The price breached the $2,460 support level early in the day, accelerating the downward trajectory. The sharpest decline came in the 14:00 UTC hour, with ETH briefly touching $2,404.47 amid the session’s peak trading volume.
Recovery efforts were hindered as resistance emerged around $2,445, and by the evening, ETH was fluctuating between $2,425 and $2,418, hinting at potential short-term fatigue. The bearish trend persists, marked by lower highs and lows, with no clear volume-driven reversal in sight. For a broader perspective on Ethereum’s market dynamics, see our analysis of Ethereum ETFs and their potential impact.
Looking Ahead
The tug-of-war between geopolitical tensions and institutional faith in Ethereum underscores a complex and evolving narrative. While the current bearish trend raises questions about short-term price movements, the strategic positioning by companies like SharpLink and BitMine suggests a longer-term bullish outlook. As the crypto space navigates these turbulent times, the interplay between political developments and technological adoption will likely shape Ethereum’s trajectory. Whether this institutional optimism can eventually translate into price stability remains an open question.
Source
This article is based on: Why Is Ether Struggling Near $2,400 Even as More Firms Add ETH to Their Treasuries?
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
