- Ethereum price fell 5% on June 23 after the Ethereum Foundation announced a 20% workforce reduction.
- Coinglass data shows $157 million in ETH liquidations on Tuesday, with long positions accounting for nearly 90% of losses.
- Ethereum Foundation ruled out financial distress, stating that funds will be redirected towards long-term ecosystem growth.
Ethereum Foundation restructuring adds pressure as ETH loses key technical support
Ethereum (CRYPTO: ETH) price declined roughly 5% on Tuesday, June 23, falling below its 20-day Simple Moving Average (SMA) near $1,700. The decline came as traders reacted to news that the Ethereum Foundation (EF) had reduced its workforce by approximately 20%.
Amplifying the official announcement, Co-founder Vitalik Buterin confirmed that the EF is also cutting its 2026 budget by roughly 40%. He added that the foundation aims to reduce long-term annual spending from ~15% of treasury assets to a sustainable baseline of 5% after 2030.
EF ruled out speculations of financial distress emphasizing that the cuts will streamline execution and free up resources for other strategies including ecosystem growth. According to Arkham Intelligence, the Switzerland headquartered foundation holds 102,702 ETH as of June 23, its lowest since 2020.
In the longer term, I personally favor a “soft lean-and-done” approach to Ethereum. Once the Strawmap is completed, generally stick to security fixes and small high-value changes, and have a much higher bar for considering new feature additions to the protocol. –Vitalik Buterin, June 23, 2026.
However, Ethereum derivatives markets participants leaned bearish as the news amplified uncertainty amid growing competition from alternative Layer-1 networks and declining network revenue.
Coinglass derivatives data shows ETH (CRYPTO: ETH) liquidations reached approximately $157 million within 24 hours following the announcement. Long traders absorbed the overwhelming majority of losses, accounting for $140 million of liquidations, while shorts totaled $17 million.
The imbalance suggests the Ethereum’s decline on Tuesday, was primarily driven by leverage capitulation rather than aggressive spot selling.
Kalshi Traders Anticipate Early Rebound Despite Ethereum Losing 20-Day MA Support at $1,700
Ethereum price experienced strong early selling pressure, with the sharpest decline occurring around 10:00 AM EDT, when price dropped to $1,620. Buyers gradually stepped in during the afternoon and evening sessions pushing the price back above $1650 range.
From a technical perspective, momentum indicators suggest neither strong bullish nor bearish dominance. ETH slid below the middle Bollinger Band (20 day SMA) near $1700, with lower-band support forming around $1,574. Historically, sustained closes below the middle band often lead to tests of lower-band support, placing the $1,550 level in focus if selling persists.
Conversely, reclaiming the 20-day SMA near $1,694 would invalidate much of the immediate bearish structure and shift attention toward the $1,800-$1,900 resistance. The MACD histogram remains positive at 15.75, indicating upward momentum from the June lows has not completely dissipated. More importantly, the MACD line remains above the signal line, suggesting the broader recovery trend remains intact.
Prediction market data from Kalshi provides additional insight into trader expectations. Kalshi traders turned notably less optimistic as ETH price wobbled in reaction to EF’s restructuring. The probability of closing the week above $1,690 by Friday, June 26, stood at just 39%, while the odds of a recovery above $1,730 were only 19%.” Notably, odds on Ethereum remaining above $1,650 also fell to 63% from 76%, (down 21 percentage points), reflecting the downbeat sentiment. However, at 63%, traders still maintain dominant expectations that ETH would hold above that key support level, through the week.
Prediction market – ETH price on Friday at 5pm EDT (June 26, 2026)
This distribution suggests that traders expect Ethereum to remain range-bound within the $1,650–$1,690 zone in the near term. The relatively low probability assigned to higher price targets indicates limited confidence in a rapid bullish breakout.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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