Ethereum Price Forecast: Impending funding crisis could put Ethereum at risk
Ethereum price today: $1,700
- Ethereum risks losing top talents and falling behind if it fails to solve an impending ecosystem funding crisis.
- New legitimate stewards need to emerge as the EF continues on its path of subtraction.
- ETH faces several dense resistance bands after declining below the $1,741 level.
Ethereum developers could face a "slow-burning funding crisis" in the coming months following the depletion of the Ethereum Foundation (EF) treasury and the expiration of the Client Incentive Program (CIP), according to former EF contributor Trent VanEpps.
In an X post on Thursday, VanEpps, who coordinated core development and funding for Ethereum developers through the Protocol Guild between May 2021 and April 2026, noted that about $30 million worth of funding is required annually to maintain Ethereum's capacity to design and ship "industry-leading" features via its vast clients, research and coordination team.
"When compared to the shared resources this funding produces today, and the long-term ambition of the project, this is quite a small cost," wrote VanEpps.
However, the lack of a strategic plan to consistently gather and allocate funding could risk destroying that capacity.
VanEpps highlighted how funding is already drying up following the EF's decision to gradually reduce annual spend from 15% to around 5% by 2030 after exhausting the majority of its treasury to bootstrap the Ethereum ecosystem over the past 10 years. He also noted that CIP, a four-year program that funded client teams with staking-based rewards, expired in April and that "no replacement appears to be forthcoming."
The post stated that the absence of consistent funding could result in the loss of experienced talent, slow progress in addressing quantum computing and scaling challenges, and ultimately hurt the reputation of the mainnet. He added that contributors may move on to other projects or be affected mentally by the issue.
"I believe we are underweighting the risk of this underinvestment in continuity. When we register the resulting symptoms in 12-18 months, the damage will be much harder and more costly to reverse," noted VanEpps. "Whatever your perspective on the shape the protocol will take in 5 or 10 years (and the maintenance beyond), there is a risk it becomes an unfunded mandate. We should not accept this ambiguity."
The post also highlighted the EF's pursuit of subtraction, noting that it plans to be less important over time in stewarding the Ethereum ecosystem. VanEpps outlined key factors for ecosystem stakeholders to hash out as new organizations emerge that may cover some of the EF's responsibilities. The list includes "recognition and active stewardship of each interdependent network resource: software (EVM/clients), network (Ethereum), and asset (ETH), [...]scalable, accountable, neutral funding mechanisms [âĶ] and the pursuit and celebration of broad adoption as a first-class citizen: we should aim to create the most robust network resources for the broadest set of public beneficiaries.
The post coincides with the announcement of co-executive director Hsiao-Wei Wang's departure from the Ethereum Foundation. The move follows a series of exits of top executives and notable developers from the EF in recent months.
Ethereum Price Forecast: ETH faces strong resistance bands after decline below the $1,741 level
On the daily chart, ETH is extending a bearish near-term bias as price remains below the 20-, 50- and 100-day Exponential Moving Averages (EMAs). The recent drop below the former rising trend-line, now offering resistance near $1,774, underscores a broken bullish structure, while the Relative Strength Index (RSI) around 38 and a mid-range Stochastic reading hint at only a modest recovery from oversold conditions.
On the topside, initial resistance aligns near $1,741, ahead of a dense cap formed by the 20-day EMA at $1,770 and the reclaimed trend-line around $1,774, with further barriers at $1,806 and $1,909 before the 50-day EMA at $1,926 and $2,018. The broader bearish setup remains intact, with ETH trading below the 100-day EMA at $2,085 and the horizontal levels at $2,108 and $2,211.
On the downside, immediate focus sits on the $1,524 horizontal support. A break there would expose $1,405 and then $1,156 as deeper bearish objectives.
(The technical analysis of this story was written with the help of an AI tool.)
