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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a development reflecting a severe liquidity crunch within the foundation governing the second-largest cryptocurrency, the Ethereum Foundation has expanded its restructuring to include a massive 40% cut to its total budget. According to reports, this move coincided with the resignation of co-Executive Director Hsiao-Wei Wang, bringing the total number of senior officials who have departed since the start of 2026 to nine. These austerity measures aim to ensure the sustainability of core operations amid mounting financial pressures.
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Sign InThese drastic cuts come as the Ethereum ecosystem faces significant funding hurdles, with experts warning of a $30 million annual gap for development teams (per TradingView reports). In comparison to peers, market data shows that Solana and Cardano have maintained relatively stable funding structures, while Ethereum's 2023 expenditure of $134.9 million creates immense pressure to rebalance outlays as the ETH price fell 2.73% to $1,692.81 (close June 23, 2026).
Traders should monitor the critical technical support level for ETH at $1,618.36 (close June 23, 2026), as management instability could heighten volatility. Looking at the economic calendar, investors are awaiting US Retail Sales data and central bank speeches to gauge global liquidity appetite. Focus remains on the foundation's ability to maintain network development after losing key leadership and nearly doubling its initial budget reduction targets.
Update: The foundation officially announced a 20% workforce reduction, affecting 54 employees, as part of a plan to reorganize into specialized clusters. The market reacted negatively to the news, with the ETH price dropping toward the $1,660 level (close June 23, 2026) amid concerns over the potential impact on the network's technical development pace.