Is ETH Price About to Soar? Ethereum Foundation Fully Expands Capacity, Vitalik Focuses on Research!

TradingKey - The Ethereum Foundation is adjusting its development strategy. Can ETH price bounce back?

On April 21, Tomasz K. Stańczak, the incoming co-executive director of the Ethereum Foundation, announced on community media that they are shifting their strategy. The focus will be on Layer 1 scaling, supporting Layer 2 scaling, and improving user experience in the short term. In the next 1-2 years, they aim to implement features through new execution and consensus layers.

Additionally, Stańczak highlighted that Ethereum founder Vitalik Buterin will reduce his daily coordination duties. He will focus more on research, including RISC-V, zkVM, and privacy.

Unlike in the past, ETH has underperformed compared to BTC over the last year. It even lagged behind Solana (SOL), leading to criticism from the Ethereum community. In the past year, Bitcoin rose over 25%, SOL fell about 7%, while ETH dropped more than 50%.

ETH and BTC price changes over the past year. Source: CoinMarketCap.

The Ethereum Foundation's strategy adjustment may improve ETH's fundamentals in the long run, but it could still face short-term pressure. Analyst @ali_charts believes ETH needs to break through $2,330 to trigger a significant rally. If ETH surpasses this resistance level, a new bullish trend could begin.

ETH price chart. Source: TradingView.