Ethereum (ETH) Reclaims $1,650 as Ethereum Foundation Cuts 20% Workforce
Ethereum (ETH) has reclaimed $1,650, trading up about 1% after the Ethereum Foundation completed a major reorganization. The foundation cut roughly 20% of its workforce, impacting 54 employees across multiple teams, and said the changes end a months-long restructuring tied to its updated mandate and treasury management strategy.
The Ethereum Foundation reorganized operations into five core clusters—Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer—plus two additional management/operations clusters. Ethereum co-founder Vitalik Buterin said the workforce reduction supports a spending-control plan: annual spending would fall from around 15% of remaining treasury before 2026 to a long-term 5% target after 2030, with a ~40% budget reduction this year.
Despite the ETH price bounce back above $1,650, the technical outlook remains fragile. The article flags bearish pressure: ETH is still below key 20/50/100-day EMAs (around $1,753/$1,901/$2,064) and faces resistance near $1,741–$1,753. A downside trigger is identified at $1,611; a decisive break below could expose lower supports near $1,524, with further targets at $1,404 and potentially $1,155 if selling intensifies.
Bearish
Although ETH bounced back above $1,650 and the market response to the Ethereum Foundation’s restructuring has not immediately derailed price, the news is not clearly bullish for traders. The workforce cut and budget reduction imply ongoing “fiscal impact” and could be interpreted as tightening resources—an overhang for sentiment.
More importantly, the article’s own technical read points to an unhealed bearish structure: ETH is still under the 20/50/100-day EMAs and is approaching/retaining resistance near $1,741–$1,753. That means many traders may treat the $1,650 reclaim as a relief rally rather than a trend reversal.
Historically, major institutional cost-cutting or governance-driven restructures tend to produce short-term volatility and headline-driven spikes, but follow-through often depends on market structure (support/resistance and derivatives liquidation data). Here, the identified risk level around $1,611 suggests that if buyers fail quickly, downside could accelerate toward lower supports (e.g., $1,524, then $1,404 and $1,155). Long-term, the restructuring could still improve operational focus, but the immediate trading signal remains cautious.