Bankless co-founder David Hoffman sold his entire Ethereum (CRYPTO: ETH) position and rotated into Zcash (CRYPTO: ZEC) and NEAR (CRYPTO: NEAR), saying ETH the asset has no clear path to being re-rated higher.

Hoffman Separates The Network From The Asset

Hoffman’s core argument is that Ethereum’s own roadmap is hurting ETH holders. Applications built on Ethereum capture most of the fees, while L2 networks take 97% margins from the rollup model. 

That means ETH the asset has no clear way to go up even while the network keeps growing.

Former Ethereum Foundation member Hudson Jameson disagreed on the price outlook but agreed that separating the network from the asset is the right way to think about it. 

He said the L2 fee issue is real but overstated, and that Ethereum’s biggest challenge is simply explaining itself. Bitcoin (CRYPTO: BTC) has a store of value, Solana (CRYPTO: SOL) has DeFi and trading. Ethereum does everything, which makes it harder to sell to everyday investors.

Ethereum Foundation Exodus Adding To Sentiment Pressure

Several senior Foundation researchers left in recent weeks as new leadership took over. Jameson said most of the exits are simply people reassessing their careers during a management change rather than anything deeper going wrong. 

However, he admitted the Foundation’s poor communication habits have made it easy for critics to frame the situation as a crisis.

The Foundation’s official mandate covers censorship resistance, openness, privacy, and security. 

Price performance is not part of it and never has been. Jameson’s view is that is fine, but other organizations in the ecosystem now need to own the tokenomics conversation and the push for broader adoption, since the Foundation lacks the budget and the staff to do it.

June Seasonality Is The Worst Month For ETH Historically

ETH enters June already down 11.2% in May, and historical data makes the near-term picture harder. ETH has closed June in the red in 7 of the last 10 years, with the average June return sitting at negative 6.27% and median at negative 2.66%. 

None of the three positive Junes came from a setup resembling current conditions.

Currently, ETH trades below the Bollinger Band basis at $2,103 with the full moving average stack bearish overhead. 

The 20-day SMA at $2,135 sits below the 50-day SMA at $2,247, which sits below the 200-day SMA at $2,504. 

Moreover, the $1,920 to $1,940 zone is the key support, with a daily close below it opening a move toward February lows.

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