Ethereum Foundation’s Strategic Pivot Sets Stage for Critical 18-Month Period as ETH Holds Above $2,600
The Ethereum Foundation has made public its whole strategy for changing its treasury. This might affect the ecosystem's finances in the next
Quick overview
- The Ethereum Foundation has publicly outlined its treasury strategy, aiming to reduce operating costs from 15% to 5% by 2030.
- With only 2.5 years of operational runway left, the foundation emphasizes the importance of pivotal upgrades in 2025-26.
- The foundation is actively engaging in decentralized finance (DeFi) through its 'Defipunk' initiative, investing significantly in various DeFi protocols.
- Ethereum's price stability above $2,600 is crucial, as future price movements depend on the foundation's success in achieving its strategic goals.
The Ethereum Foundation has made public its whole strategy for changing its treasury. This might affect the ecosystem’s finances in the next 18 months, while Ethereum ETH/USD holds steady over $2,600. The non-profit body that backs the world’s second-largest cryptocurrency says it is at a very significant point in its history, with only 2.5 years of operational runway left at the current rate of spending.
Hsiao-Wei Wang, the co-executive director, said, “2025-26 are likely to be pivotal for Ethereum, so we need to pay more attention to important deliverables.” The foundation’s new style of doing things is very different from how it used to do things, which was more traditional. It has precise spending goals and requires active participation in DeFi.
Aggressive Cost Reduction and Transparent Operations Framework
The foundation plans to cut its operating costs from 15% of its total assets to only 5% by 2030. This large decline happens just as automatic ETH sales triggers are enabled. If cash reserves drop below the 2.5-year expense buffer barrier, which is about 37.5% of the treasury, these triggers will work.
The foundation had about $970.2 million in assets on October 31, 2024. More than 81% of these assets were in ETH positions. The group has promised to send out reports every three months and every year that list its assets and how well its investments are doing. This is in response to concerns from the community about transparency that arose after unexpected ETH sales in the last few months.
“Defipunk” Principles Drive DeFi Integration Strategy
The Ethereum Foundation is currently testing decentralized finance protocols with its new “Defipunk” concept. This is a big change from how things used to be. The 1993 Cypherpunk Manifesto is the basis for this strategy. It focuses on protocols that protect anonymity and don’t need permission, which is in line with Ethereum’s key values.
The foundation has already given 45,000 ETH (worth $120 million at the time it was deployed) to a number of DeFi technologies. It has loaned Aave money, for example, and borrowed $2 million worth of GHO stablecoin. The foundation’s agreements with Spark and Compound show that it is committed to ecosystem expansion through direct financial investment.
ETH/USD Technical Analysis Points to Consolidation Above Key Support
The fact that ETH is currently worth more than $2,600 means that it is in a period of consolidation after recent gains. Bitcoin is in a rising channel, with $2,600 as a key support level and $2,640 to $2,665 as a key resistance level.
The hourly chart reveals that ETH is above its 100-hour Simple Moving Average. The current rise from $2,476 to $2,677 appears like an excellent time to buy. The MACD is getting stronger in a negative sector, but the RSI has dropped below the 50 zone. This could suggest that things will be unstable in the near future.
Ethereum Price Prediction and Market Outlook
The price of ETH seems to depend a lot on how effectively the foundation meets its goals and how the market as a whole does. The current technical setup implies that if bulls can break past the $2,665 barrier, the price might move toward the $2,720-$2,780 resistance levels. But if support doesn’t stay above $2,600, the price might drop to $2,575 or possibly $2,500.
The foundation’s 18-month goal for “pivotal” upgrades lines up with prospective triggers like further DeFi integration, changes to protocols, and the start of their Trillion Dollar Security Initiative. ETH is currently 46.5% lower than its all-time high of $4,878 from November 2021, but the foundation’s proactive strategy to managing its treasury and building its ecosystem could help prices go back up.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
