The price of Ethereum continues to show weakness following statements from co-founder Vitalik Buterin regarding a shift in strategy for the Ethereum Foundation (EF). Analyst Ali Martinez pointed this out.
— Ali Charts (@alicharts) May 26, 2026
The organization plans to reduce its role in the ecosystem and focus on critical tasks.
Buterin noted that the foundation holds only 0.16% of the total supply of the second-largest cryptocurrency. He stated that EF should become a "more compact ship," transferring asset support to other organizations. Meanwhile, Buterin himself retains 90% of his capital in Ethereum.
Martinez ironically commented on these changes, highlighting the clear disconnect between the idealistic statements of developers and the actual market dynamics. While the foundation "searches for identity," prices continue to decline.
From a technical perspective, the asset has been in a prolonged range since 2021. A recent attempt to establish a position above the 200-week moving average ended in failure.
Hourly chart of ETH/USDT on Binance. Source: TradingView.Martinez identified a key support level at $1850. A weekly close below this level would accelerate the decline. He set an intermediate target at $1560, with a primary target at the lower range around $1070.
The analyst emphasized that he does not plan to open short positions. Instead, he intends to use the decline to accumulate the asset through a DCA strategy.
Historical data from the MVRV metric indicates that the area below $1850 has traditionally been a window for long-term purchases ahead of a new bullish cycle.
For Ethereum to return to growth, it needs to reclaim the $2500 level and overcome resistance at $3100, Martinez concluded.
It is worth noting that in March, EF published an updated mandate, establishing the principle of minimal intervention in the network's development.
In May, blockchain researcher and investor William Mougayar defended the Ethereum Foundation, stating that the organization is "doing exactly what it was created to do."