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- The Ethereum Foundation has reduced its staff by 20% after completing a major restructuring.
- ETH is up 1% and is now trading above $1,650.
The Ethereum Foundation (EF) has completed a major reorganization of the organization that includes reducing staff by approximately 20%, which affects 54 employees in several departments.
In a blog post published on Tuesday, the Foundation said the changes complete a months-long restructuring process involving the implementation of new content and financial management systems.
The Ethereum Foundation introduces a new organizational structure
As part of the restructuring, EF has restructured its operations into five main layers: Protocol Layer, Access Layer, User Layer, Community Layer, and Institutional Layer. Two additional teams will oversee management and operations.
According to the Foundation, each group is made up of specific responsibilities, accountability systems, and internal processes related to its goals.
“Each work system requires a different approach, is responsible for different types of outcomes, and has different internal characteristics related to the work to be done,” EF said.
Ethereum co-founder Vitalik Buterin revealed in a post on X that the job cuts come as the Foundation follows a cost-cutting strategy.
EF plans to reduce annual spending from about 15% of its remaining assets before 2026 to a long-term goal of 5% after 2030. As part of this effort, the Foundation is reducing its budget by about 40% this year.
Buterin acknowledged the human cost of rehabilitation, rejecting the idea that the removal was a good job.
“Most of the time, when an organization does something like this, people try to pretend that nothing valuable was lost,” Buterin wrote. “I will not try to fake this. I respect my EF colleagues too much to pretend that not much has been lost.”
The foundation said affected employees will receive severance pay and transition assistance, similar to the assistance provided to those who left their organization.
Ethereum price forecast: ETH risks another drop below key support
Ethereum continues to experience bearish pressures, indicating continued weakness in the market.
During the 4-hour period, ETH continues to trade below the 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs), which are near $1,753, $1,901, and $2,064, respectively.
The cryptocurrency is also below the channel that was previously broken around $1,729 with an important horizontal position near $1,741. These technical barriers indicate that the broader bearish trend remains intact.
Ethereum is now approaching an important support level at $1,611 after being rejected near the confluence of the downtrend and the 20-day EMA.
A decisive break below $1,611 could reveal the next big break at $1,524. If selling continues to increase, additional low targets emerge at $1,404 and possibly $1,155.
Unless buyers recover from major resistance levels, Ethereum’s price remains vulnerable to further damage in the near future.
