Ethereum Price Falls Amid U.S. Political Tensions as Institutions Boost ETH Holdings

Ethereum (ETH) fell 3.3% to $2,418.39 on July 1, reflecting broader crypto market weakness. The downturn comes amid political turmoil in the U.S., particularly a public clash between Elon Musk and Donald Trump over the proposed “One Big Beautiful Bill,” which Musk criticized as fiscally reckless. Trump’s retaliatory remarks, including calls to deport Musk, added to market jitters. The political uncertainty has dampened investor confidence, impacting risk assets like crypto.

According to CoinGecko, the total crypto market cap dropped 4.1% in 24 hours. ETH technical indicators show it broke key support at $2,460 during early trading, hitting a low of $2,404.47 by 14:00 UTC. Despite recovery attempts, resistance around $2,445 remains firm. The price action shows no reversal signals, maintaining a bearish structure with lower highs and lows.

Despite the drop, institutional interest in Ethereum is rising. SharpLink Gaming (Nasdaq: SBET) announced it acquired 9,468 ETH — worth $22.8 million — between June 23 and 27, boosting its total holdings to 198,167 ETH. Chairman Joseph Lubin, also an Ethereum co-founder, described ETH as a “strategic currency” aligned with the digital economy, not just a speculative asset.

Similarly, BitMine (NYSE American: BMNR) revealed a $250 million private placement to fund its Ethereum treasury strategy. Backers include Pantera, Galaxy Digital, and Kraken. The company plans to allocate ETH as its primary reserve asset and engage in staking and DeFi through partners like FalconX, BitGo, and Fidelity Digital.

While ETH price remains under pressure, growing institutional adoption signals a shift in how Ethereum is valued—as a foundational asset for the future digital financial system.