- 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%.
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.
However, Ethereum derivatives markets participants leaned bearish as the news amplified uncertainty amid growing competition from alternative Layer-1 networks and declining network revenue.
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 – 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.
