ETH Declines 3.3% as Support at $2,460 Fails to Hold
Ethereum (ETH) fell sharply on July 1, dropping 3.3% to $2,418.39 amid a wave of selling pressure and broader market uncertainty. The drop below the key $2,460 support level has exposed ETH to short-term bearish continuation, despite growing institutional interest in the asset.
ETH traded within a $96 range, declining from $2,500.88 to $2,404.47 before stabilizing slightly near $2,418.
High-Volume Sell-Off Aligns With Political Turbulence
The steepest losses occurred during the 14:00 UTC hour, when Ethereum dipped to its daily low of $2,404 on session-high volume of nearly 380K, reflecting strong bearish momentum.
Repeated recovery attempts stalled below $2,430, forming new resistance at $2,445.
Market sentiment weakened further due to political conflict in the U.S., including a public clash between Elon Musk and Donald Trump over fiscal policies and energy subsidies. The resulting fears around regulatory uncertainty and fiscal instability negatively impacted investor risk appetite across crypto markets.
Companies Boost ETH Treasury Holdings Despite Price Decline
Amid market weakness, two major firms announced significant Ethereum treasury allocations:
- SharpLink Gaming disclosed a purchase of 9,468 ETH ($22.8M), bringing its total holdings to 198,167 ETH, currently the largest Ethereum treasury by a public company.
- BitMine announced a $250 million private placement to fund its ETH-focused strategy. Backed by major institutional investors, the company plans to use ETH as a primary reserve asset and deploy it in staking and DeFi protocols.
These moves mark a notable shift in corporate treasury strategies, positioning ETH as a “strategic currency” for the digital economy.
Technical Outlook: Trend Remains Bearish
- Support broken: $2,460
- Immediate resistance: $2,430–$2,445
- Short-term structure: Lower highs and lower lows
- Volume trend: Weakening on rebounds, no reversal signals detected
Between 20:01 and 21:00 UTC, ETH ranged narrowly between $2,418 and $2,425 on declining volume — a potential sign of short-term exhaustion but not yet a confirmed reversal.
Strong Fundamentals, Weak Price Action
While Ethereum’s utility and adoption continue to grow, especially among institutions, price remains under pressure. Unless ETH reclaims the $2,460 support level, the current bearish structure may persist in the near term.
Traders should monitor volume and key resistance tests closely for confirmation of any trend reversal.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.