Key takeaways
- The Ethereum Foundation has reduced its workforce by 20% following the completion of a major reorganization.
- ETH is up by 1% and is now trading above $1,650.
The Ethereum Foundation (EF) has completed a broad organizational restructuring that includes reducing its workforce by approximately 20%, affecting 54 employees across multiple teams.
In a blog post published Tuesday, the Foundation said the changes conclude a months-long reorganization process tied to the implementation of its updated mandate and treasury management strategy.
Ethereum Foundation introduces new organizational structure
As part of the overhaul, the EF has reorganized its operations into five core clusters: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Two additional clusters will oversee management and operational functions.
According to the Foundation, each cluster has been designed with specific responsibilities, accountability frameworks, and internal structures tailored to its objectives.
“Each domain of work requires a different approach, is held accountable for different kinds of results, and has a different internal structure tailored to the work that needs to be done,” the EF stated.
Ethereum co-founder Vitalik Buterin revealed in a post on X that the workforce reduction comes as the Foundation pursues a significant spending reduction strategy.
The EF plans to lower annual spending from approximately 15% of its remaining treasury before 2026 to a long-term target of 5% after 2030. As part of this effort, the Foundation is reducing its budget by roughly 40% this year.
Buterin acknowledged the human cost of the restructuring, rejecting the notion that the layoffs were simply an efficiency exercise.
“Often, when an organization goes through something like this, people try to pretend that nothing of great value was lost,” Buterin wrote. “I will not try to pretend this. I respect my EF colleagues far too much to pretend that there was not much that is lost.”
The Foundation said affected employees will receive severance packages and transition assistance, similar to support provided to previous departing team members.
Ethereum price forecast: ETH risks further decline below key support
Ethereum continues to face downside pressure, with liquidation data highlighting persistent weakness in market sentiment.
On the 4-hour timeframe, ETH continues to trade below its 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs), located near $1,753, $1,901, and $2,064, respectively.
The cryptocurrency also remains below a previously broken descending trendline around $1,729 and a key horizontal resistance zone near $1,741. These technical barriers suggest 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 descending trendline and the 20-day EMA.
A decisive break below $1,611 could expose the next major support zone at $1,524. If selling pressure intensifies, additional downside targets emerge at $1,404 and potentially $1,155.
Unless buyers reclaim key resistance levels, Ethereum’s price action remains vulnerable to further losses in the near term.
The post Ethereum reclaims $1,650 as Ethereum Foundation cuts 20% of workforce appeared first on CoinJournal.
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