Why Is ETH Struggling Near $2,400 as More Companies Add ETH to Their Treasuries?
ETH dropped to $2,418, down 3.3% over 24 hours, as traders failed to sustain support around $2,460 during high-volume selling.
Updated: July 1, 2025, 9:57 PM
Published: July 1, 2025, 9:53 PM
Ether’s price faced renewed pressure on July 1, falling to $2,418.39 after a day of sustained losses, according to CoinDesk Research’s technical analysis model.
The decline occurred amid a broader cryptocurrency market sell-off. CoinGecko data shows total market capitalization fell 4.1% over the past 24 hours, driven partly by renewed political volatility in the U.S.
The downturn follows a high-profile dispute between Elon Musk and Donald Trump regarding the latter’s expansive fiscal and spending plan, dubbed the "One Big Beautiful Bill." Musk called the legislation "utterly absurd," warning it would increase national debt by $5 trillion, repeal clean-energy incentives, and harm jobs. Trump retaliated by personally attacking Musk, accusing him of opposing the bill due to Tesla’s lost subsidies.
Amid this uncertainty, companies continue accumulating ETH as a strategic reserve asset. SharpLink Gaming (Nasdaq: SBET) announced acquiring an additional 9,468 ETH (worth $22.8 million) between June 23 and June 27, bringing its total holdings to 198,167 ETH. CEO Joseph Lubin described Ethereum as a "strategic currency" for digital commerce.
Similarly, BitMine (NYSE American: BMNR) disclosed a $250 million private placement to fund an Ethereum treasury strategy, with backing from Pantera, Galaxy Digital, and others. The firm plans to stake ETH and deploy it in DeFi protocols.
These developments reflect growing institutional acceptance of ETH for treasury management, even as ETH’s price faces downward pressure.
Key Technical Analysis Highlights
- ETH fell 3.3% over 24 hours, from $2,500.88 to $2,418.39.
- Support at $2,460 broke during 04:00 UTC, triggering sustained selling.
- Sharpest drop occurred at 14:00 UTC, with volume peaking at 379,855 ETH.
- Recovery attempts faced resistance near $2,430.
- Bearish trend remains intact, with lower highs and lows.
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FAQs
Q: Why did ETH drop despite institutional buying?
A: Macroeconomic uncertainty and political volatility overshadowed institutional demand, triggering short-term selling.
Q: Which companies are leading ETH treasury adoption?
A: SharpLink Gaming (198,167 ETH) and BitMine ($250M allocation) are prominent examples.
Q: What’s the outlook for ETH’s price?
A: Technicals suggest bearish momentum, but long-term adoption trends may support recovery.
👉 Learn how institutions stake ETH
A portion of this content was generated using AI tools and reviewed by editors for accuracy. For details, see CoinDesk’s AI Policy.
Siamak Masnavi
Researcher specializing in blockchain and crypto regulations. Former software developer in banking (London/Zurich).
CD Analytics
CoinDesk’s AI-powered market analysis tool, human-edited before publication. Sources include CoinDesk Data.