The cryptocurrency market faced a significant pullback on Tuesday, with Bitcoin (BTC) retreating after posting its highest-ever monthly close. The leading digital asset was trading at approximately $106,175, marking a roughly 1% decline over the past 24 hours as profit-taking ensued. This downturn appeared closely correlated with weakness in the U.S. equity markets, particularly in the technology sector. Shares of major tech players like Tesla (TSLA) and Nvidia (NVDA) saw substantial losses, contributing to a 0.6% drop in the Nasdaq composite index. This cross-market correlation, where digital assets often mirror the performance of tech stocks, exerted considerable pressure on crypto valuations. The negative sentiment was not confined to Bitcoin; major altcoins also experienced steep declines. Solana (SOL), which had recently spiked on positive ETF news, led the losses with a 6% drop, while Cardano (ADA) and Avalanche (AVAX) also posted notable decreases, signaling a broad-based market downturn.

Bitcoin (BTC) Retreats While Ether (ETH) Faces Institutional Crosswinds

Adding to the market's cautious tone were comments from Federal Reserve Chairman Jerome Powell. Speaking at an ECB event in Europe, Powell reiterated his patient stance on potential interest rate cuts, emphasizing that the U.S. economy remains in a strong position. While he did not entirely rule out a rate cut in July, his remarks gave little indication of an imminent policy shift, contrasting with the more dovish views of at least two other Fed members. Market participants are now keenly awaiting the June employment report, which is scheduled for release on Thursday due to the July 4th holiday. Economists anticipate a growth of 110,000 jobs, a decrease from the 139,000 added in the previous month. A significant deviation from this forecast could drastically alter market sentiment and potentially influence the Fed's upcoming decision, creating a pivotal moment for risk assets like Bitcoin and the broader crypto market.

Ethereum's Paradox: Price Weakness Meets Strong Institutional Adoption

While the market as a whole felt the bearish pressure, Ether (ETH) displayed a particularly interesting dynamic. The price of ETH fell to a low of $2,418.39 on July 1, caught in the wider market selloff that saw total crypto market capitalization decline by over 4%. This weakness was exacerbated by renewed political volatility in the U.S., including a high-profile dispute between Elon Musk and Donald Trump over a proposed spending bill. However, this price struggle contrasts sharply with a wave of significant institutional adoption. On Tuesday, SharpLink Gaming (Nasdaq: SBET) announced it had acquired an additional 9,468 ETH, valued at $22.8 million, between June 23 and June 27. This purchase brought its total holdings to an impressive 198,167 ETH, solidifying its status as the largest publicly traded holder of Ethereum. SharpLink Chairman and Ethereum co-founder Joseph Lubin stated the company is placing ETH at the core of its balance sheet, viewing it not as a speculative play but as a foundational “strategic currency” for the digital economy.

ETH Technical Breakdown and Key Levels to Watch

This institutional embrace was further highlighted when BitMine (NYSE American: BMNR) disclosed a $250 million private placement specifically to fund an Ethereum treasury strategy, with backing from major firms like Pantera and Galaxy Digital. Despite this strong vote of confidence from institutional players, ETH's price action remains bearish from a technical standpoint. Over the past 24 hours, ETHUSDT fell approximately 2.3% to trade around $2,536.84. A review of the hourly chart shows a decisive break below the critical $2,460 support level during the 04:00 UTC hour, which triggered sustained selling pressure. The most intense decline occurred around the 14:00 UTC hour, where ETH briefly touched a low of $2,404.47 on a significant volume spike. Recovery attempts were weak, repeatedly failing near the $2,430 mark, with new resistance forming around $2,445. The ETH/BTC pair remained relatively flat, trading around 0.02355, indicating that Ether's weakness was largely in line with Bitcoin's, rather than outsized underperformance. For now, the bearish trend structure of lower highs and lower lows remains intact, presenting a fascinating paradox for traders weighing short-term technicals against long-term institutional accumulation.