Key takeaways
- The Ethereum Foundation has reduced its workforce by 20% after completing a major reorganization.
- ETH rose 1% and is now trading above $1,650.
The Ethereum Foundation (EF) has completed an extensive organizational restructuring that includes reducing its workforce by approximately 20%, impacting 54 employees across multiple teams.
In a blog post published on Tuesday, the institution said the changes conclude a months-long reorganization process linked to the implementation of its updated mandate and treasury management strategy.
The Ethereum Foundation introduces a new organizational structure
As part of the overhaul, EF reorganized its operations into five core groups: protocol layer, access layer, user layer, community layer, and institutional layer. Two additional groups will oversee administrative and operational functions.
Depending on the organization, each group is designed with specific responsibilities, accountability frameworks, and internal structures tailored to its objectives.
“Each area of the business requires a different approach, is responsible for different types of results, and has a different internal structure tailored to the work to be done,” EF said.
Ethereum co-founder Vitalik Buterin revealed in a post on X that the workforce reduction comes as the organization pursues a major spending reduction strategy.
The emergency fund plans to reduce annual spending from about 15% of its remaining treasury before 2026 to a long-term goal of 5% after 2030. As part of these efforts, the foundation is reducing its budget by about 40% this year.
Buterin acknowledged the human cost of the restructuring process, rejecting the idea that layoffs were merely an exercise in efficiency.
“A lot of times, when an organization goes through something like this, people try to pretend that nothing of great value was lost.” Buterin wrote. “I’m not going to try to pretend it is. I respect my colleagues at EF too much to pretend that there wasn’t a lot that was lost.”
The organization said affected employees will receive severance packages and transition assistance, similar to the support provided to previous departing team members.
Ethereum Price Forecast: ETH risks further decline below key support
Ethereum continues to face downward pressure, as liquidation data highlights ongoing weakness in market sentiment.
On the 4-hour time frame, Ethereum continues to trade below the 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs), which are located near $1,753, $1,901, and $2,064, respectively.
The cryptocurrency also remains below the previously broken downtrend line around $1,729 and the key horizontal resistance area near $1,741. These technical barriers indicate that the broader bearish structure remains intact.
Ethereum is now approaching the important support level at $1,611 after being rejected near the convergence of the downtrend line and the 20-day EMA.
A decisive break below $1,611 could expose the next major support area at $1,524. If selling pressure intensifies, additional downside targets will emerge at $1,404 and perhaps $1,155.
Unless buyers reclaim key resistance levels, Ethereum price action remains vulnerable to further losses in the near term.
