Ethereum price prediction: $1,616 support in focus as ETH drops 1.22 percent

Traders Union
All News
Crypto
Ethereum slides 1.22% to $1,672.72

Highlights

The Ethereum Foundation is reducing staff by 20% and cutting budgets by 40% to prioritize long-term fiscal sustainability.
A strategic restructuring introduces five clusters for targeted protocol development and institutional adoption, while former researchers launch Ethlabs to address transaction finality.
ETH/USD faces a 67% probability of downside within a $1,616–$1,704 range, with overbought technicals and bearish momentum signaling reversal risk.

Workforce cuts and structural overhaul as foundation prioritizes fiscal discipline

The Ethereum Foundation has carried out a significant restructuring, reducing its workforce by 54 employees, or about 20% of its staff, as reported by Crypto.news. This move is accompanied by the launch of a new five-cluster operational structure, targeting protocol development, access, users, community, and institutional adoption, which is intended to clarify departmental responsibilities and improve resource allocation. According to U.Today, founder Vitalik Buterin also confirmed that the foundation is cutting its budget by approximately 40%, shifting towards a permanent 5% endowment model, indicating a sharper focus on fiscal discipline and long-term sustainability. Additionally, five former senior Ethereum Foundation researchers have established Ethlabs, an independent nonprofit lab backed by BitMine and SharpLink, to continue efforts on transaction finality and institutional adoption challenges; these steps highlight active adaptation within the Ethereum ecosystem, though price action has remained under broader selling pressure.

Overbought oscillators versus bearish momentum signal reversal risk

On the technical side, ETH is trading above its MA-20 but remains below the MA-50 and MA-200, reflecting a short-term uptick set against a medium- and long-term bearish backdrop. Immediate resistance is clearly marked at the Ichimoku Kijun level of $1,683. Momentum remains negative, with the MACD at Strong Sell and the ADX also signaling Sell. The RSI at 48.57 indicates a mild bearish tilt, while Stoch RSI, CCI, and BBP all flag overbought conditions, hinting at buyer dominance but the potential for upside exhaustion. The Awesome Oscillator is currently neutral. This combination of overbought readings from oscillators versus broader negative momentum points to heightened risk of a near-term reversal.

Sideways trading expected unless resistance or support levels break

Looking ahead to the next 2–3 sessions, ETH is expected to remain within a range of $1,616 to $1,704, in line with typical volatility bands for the current environment. The probability of a move higher stands at 33%, while a downside move is more likely at 67%, making a reversal less probable unless immediate resistance at $1,683 is breached. The baseline scenario foresees largely sideways trading within the established range. A more bullish scenario would require a confirmed breakout above $1,683, while violation of $1,616 support would open the way for further declines.

Anton Kharitonov, expert at Traders Union, sees Ethereum at risk as recent Foundation restructuring and budget cuts signal internal caution and potential operational bottlenecks. He notes that technical momentum remains negative, with oscillators flagging overbought conditions against weak overall trend. Kharitonov is wary of upside moves unless key resistance at $1,683 is broken. "Until $1,683 is reclaimed, I remain cautious and expect more sideways or downward action."

Earlier, analysts noted that persistent bearish momentum, geopolitical easing and uncertain institutional flows had kept Ethereum under pressure despite shifting risk sentiment. The current pivot towards foundational restructuring and tighter fiscal discipline introduces a pivotal long-term factor, with traders now looking to $1,683 as the immediate resistance level that could define near-term direction.

Source of Data: ETH Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.