Ethereum's price may drop to $1000 as the foundation shifts strategy, according to analyst Ali Martinez.
Ethereum's price is experiencing downward pressure following remarks from co-founder Vitalik Buterin about a new direction for the Ethereum Foundation (EF). Analyst Ali Martinez highlighted this trend.
The EF plans to scale back its involvement in the ecosystem, focusing on essential tasks. Buterin noted that the foundation currently holds just 0.16% of Ethereum's total supply and aims to operate as a "more compact ship," shifting asset support to other organizations. Notably, Buterin himself retains 90% of his wealth in Ethereum.
Martinez pointed out the irony in the foundation's idealistic goals contrasted with the prevailing market realities, suggesting that while the foundation seeks clarity in its identity, Ethereum's price continues to slide.
From a technical standpoint, Ethereum has remained in a prolonged trading range since 2021. A recent effort to rise above the 200-week moving average was unsuccessful.
Martinez identified a critical support level at $1850. He warned that a weekly close below this threshold could trigger further declines, with an intermediate target set at $1560 and a primary target around $1070.
Despite these predictions, Martinez indicated that he does not intend to short Ethereum; instead, he plans to use the downturn to accumulate more of the asset through a dollar-cost averaging strategy. Historical data suggests that prices below $1850 have often provided a good opportunity for long-term investments before a bullish trend.
For Ethereum to regain upward momentum, it must reclaim the $2500 mark and overcome resistance at $3100, according to Martinez. In March, the EF outlined a new mandate emphasizing minimal intervention in the network's development. Blockchain researcher William Mougayar defended the foundation's role, asserting it is fulfilling its original purpose.
