Ethereum Community Foundation Launch Signals Network Revival, Technical Consolidation Above $2,400
Ethereum is still trading above the critical $2,400 milestone, and the network is going through major changes that could change its long
Quick overview
- Ethereum is currently trading above $2,400, with significant institutional interest and on-chain accumulation patterns.
- The newly launched Ethereum Community Foundation aims to fund projects that reduce ETH supply, potentially enhancing its long-term value.
- Institutional inflows into Ethereum ETFs have reached 106,000 ETH over the past week, indicating strong demand despite current price levels.
- Technical analysis suggests a cautious near-term outlook for ETH, with key support levels at $2,350-$2,375 and potential bullish medium-term prospects.
Ethereum ETH/USD is still trading above the critical $2,400 milestone, and the network is going through major changes that could change its long-term path. The price movement has been rather quiet lately, but a mix of institutional changes, on-chain accumulation patterns, and technical considerations are making the world’s second-largest cryptocurrency look interesting.
New Foundation Targets ETH Supply Reduction Through Strategic Funding
Developer Zak Cole’s launch of the Ethereum Community Foundation (ECF) could change the way that network development is funded in a big way. The ECF is different from other crypto projects that typically create new tokens because it only funds projects that burn ETH and don’t make new tokens.
The foundation has already raised millions of dollars and wants to use that money to improve validator infrastructure through the Ethereum Validator Association (EVA), integrate real-world assets, and build public goods that solve technical problems. This intentional focus on ways to reduce supply is in line with Ethereum’s post-merge monetary policy and might help ETH’s long-term value proposition in a big way.
The ECF’s governance concept, which uses coin voting, is especially interesting since it lets the wider Ethereum community have a direct say in funding decisions. This democratic way of developing ecosystems could speed up the adoption of projects that are good for the economy while keeping everything open by making all treasury actions public.
Institutional Appetite Drives Seven-Week Ethereum ETF Inflow Streak
Ethereum spot ETFs are still in high demand from institutions, with inflows of 106,000 ETH (about $258.6 million) over the last week, marking the seventh week in a row that this has happened. Even though ETH is trading significantly below its all-time highs, this institutional accumulation continues, which suggests that smart investors see current prices as good entry targets.
The way that ETFs are coming in is similar to how other on-chain assets are accumulating. For example, there are now about 30 million ETH in addresses that have never spent tokens, which is an all-time high for this group of investors. These numbers, together with daily transaction volumes above 1.5 million (the highest level since early 2023), show that more people are using the network and holders are more confident.
ETH/USD Technical Analysis Points to Critical Support Test
From a technical point of view, Ethereum is at a critical point after failing to stay over $2,461 earlier this week. The cryptocurrency ended below its 50-day exponential moving average at $2,428, which made them worry that it could go down even more.
The current technical indications show a combination of things. The Relative Strength Index is at 47, which is below the neutral 50 level. The MACD shows that the market is still unsure about what to do. These bearish momentum indications make it look like the easiest way to go may be down in the near future.
The immediate $2,350-$2,375 zone is a key support level to watch. If it breaks below, it might lead to a retest of June’s low of $2,111. But the fact that there is a lot of accumulation at these levels should help buyers during any collapse.
Ethereum Price Prediction: Cautious Near-Term Outlook, Bullish Medium-Term Potential
Ethereum seems to be in a good place to keep consolidating, but in the short term, it looks like it will go down a little bit. Bears are still in charge in the short term because the price couldn’t get back to the $2,461 daily level. If selling pressure increases, the next objectives are $2,350 and possibly $2,220.
But the combination of favorable underlying changes, such as the launch of the ECF, steady inflows into ETFs, and record levels of accumulation, suggests that any large drop could be a good time for patient investors to buy.
If the price stays above $2,465, the bearish short-term prognosis will be wrong, and the next resistance cluster will be around $2,520–$2,550. If these levels are broken, it might start a move toward the $2,724 daily resistance and possibly break through the $3,000 psychological barrier.
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