ETH/USD Forecast: Ethereum Trades Near 1763 as Governance Concerns Pressure Market

Despite record levels of ETH participation in staking, more than eight leading developers have left the Ethereum Foundation over the past year alone, which traders interpret as a signal of an internal organizational crisis. On March 13, the company published the strategic policy document The Promise of Ethereum: Introducing the EF Mandate, which mentioned four key development priorities: censorship resistance, openness, privacy, and security. At the same time, information is spreading in the industry that most employees working at the Ethereum Foundation have faced an actual dilemma — accept the new principles or leave the team, which strengthens the perception of the current changes as an institutional transformation with elements of personnel pressure. In expert circles, the current situation is interpreted not only as a consequence of changing technological and governance cycles but also as a result of increasing financial pressure. In order to optimize operating costs and minimize the negative market impact of regular asset sales, the foundation’s management has taken an unusual step for such an institution. Earlier, the Ethereum Foundation management reported placing the first 72.0 thousand ETH into staking through DVT-lite infrastructure, which can be viewed as an attempt to manage treasury reserves more efficiently and increase asset returns without putting pressure on the spot market. Ethereum Foundation co-founder and Consensys CEO Joe Lubin emphasized that cost reductions, personnel changes, and the restructuring of the Ethereum Foundation should be interpreted as a stage of evolutionary development rather than a manifestation of crisis processes. In his opinion, the foundation should focus exclusively on technology development and maintaining protocol neutrality, while institutional interaction should be developed by external ecosystem participants. As a potential next growth driver for the company, he highlighted commerce based on autonomous AI agents.

In addition, last week BitMine Immersion Technologies made an additional ETH purchase worth about 41.0 million dollars, continuing its strategy of building the largest corporate ETH reserve. The company declares a goal of increasing its share to 5.0% of the issuance. In addition, at the beginning of June, 3.5 million perpetual Series A preferred shares were issued with a fixed dividend of 9.5% per annum, with net proceeds estimated at approximately 273.8 million dollars.

At the same time, Standard Chartered’s head of digital assets research, Geoff Kendrick, stated that, in his assessment, the cryptocurrency market has already “found its bottom” and is moving into a recovery phase. As an argument, he highlighted two macroeconomic and geopolitical factors: the record-breaking initial public offering (IPO) of SpaceX and the peace agreement between the United States and Iran, which could lead to a decline in oil prices to pre-crisis levels and, accordingly, improve global interest in risk assets.

Support and resistance levels

On the daily chart, a local correction is forming, but the price is still holding above the support line of the descending channel with dynamic boundaries at 2300.00–1500.00.

Technical indicators are slowing the sell signal: the EMA fluctuation range on the Alligator indicator is narrowing, while the fast EMAs are still below the signal line, whereas the AO histogram remains in the negative zone, where it is forming new upward bars and gradually approaching the zero level.

Resistance levels: 1910.00, 2300.00.

Support levels: 1670.00, 1400.00.

ETH/USD trading scenarios and forecast

Long positions should be opened after the price consolidates above 1910.00, with a target at 2300.00. Stop-loss — 1840.00. Expected timeframe: 7 days or more.

Short positions should be opened after the price consolidates below 1670.00, with a target at 1400.00. Stop-loss — 1750.00.