Ethereum Slides as Broader Crypto Selloff Deepens and Ethereum Foundation Cuts Staff

Ethereum came under renewed pressure as ETH hovered near $1,660, down more than 5% over the past 24 hours. The decline tracks a wider risk-off move across crypto, with Bitcoin, Solana, XRP, BNB and Dogecoin also trading lower. Sentiment around ETH is facing an added headwind after reports that the Ethereum Foundation (EF) has reduced its workforce by roughly 20% as part of an internal overhaul. The question for traders is whether ETH is simply following the market lower, or whether the EF shakeup is adding incremental downside risk to the near-term outlook. Ethereum Foundation cuts about 20% of roles The EF said it has wrapped up a reorganization that lasted several months, eliminating 54 positions and shifting to a new operating model built around five core clusters: protocol layer, access layer, user layer, community layer and institutional layer. The stated aim is a leaner structure more closely aligned with Ethereum's long-term development priorities. In principle, a tighter organization could improve focus and execution. In practice, markets often treat workforce reductions cautiously, especially when they coincide with a sharp price pullback. Why the restructuring matters for ETH Ethereum remains the largest smart contract blockchain, but its competitive backdrop has tightened. Solana continues to draw attention for speed and user activity, Bitcoin dominates institutional narratives, and newer networks are vying for liquidity, developers and users. While Ethereum is not a centralized company and does not depend on the Foundation to function, the EF plays a meaningful role in research support, protocol development, ecosystem coordination and long-range direction. When investors see restructuring and headcount cuts during a market downturn, uncertainty can rise, and in a weak tape that often translates into additional selling pressure. Warning sign or necessary reset? Bears may read the 20% reduction as a negative signal during a difficult market, pointing to potential budget pressure, cost-cutting needs, or an attempt to address criticism around strategy and execution. Bulls argue the move could represent a needed reset. A smaller, more disciplined Foundation could concentrate more tightly on core protocol work and reduce organizational complexity. If the new structure improves scalability, user experience and institutional adoption, the current drawdown may eventually be seen as a painful but constructive transition. Key price levels: $1,600 in focus ETH is now near a short-term support zone. Traders are watching $1,600 as the first key level. Holding above it could allow buyers to attempt a rebound toward $1,700. A push into the $1,700–$1,750 area would be an early sign of stabilization. If $1,600 fails, downside targets shift toward $1,550 and then $1,500. A decisive break below $1,500 would likely indicate panic selling remains active, particularly if Bitcoin stays weak and equity-market pressure persists. Can ETH recover? A recovery remains possible, but it likely hinges on two factors: broader crypto stabilization and clearer messaging from the Ethereum Foundation on whether the restructuring improves execution. If communication improves and ecosystem building continues, the market's negative reaction could fade. For now, ETH is contending with two overlapping pressures: marketwide risk aversion and renewed questions around leadership and direction. If ETH holds $1,600 and reclaims $1,700, the reorganization may be treated as short-term noise. A break below $1,600 could deepen the slide toward $1,550 or $1,500.