Ethereum Price Forecast: ETH faces resistance at $2,750 following Protocol launch
June 3, 2025
- The Ethereum Foundation rebrands its PR&D team to Protocol to scale its L1, boost blob spaces, and improve user experience.
- The EF would be laying off some of its staff as part of the rebranding and restructuring.
- ETH experienced a rejection at a key rising trendline resistance despite bullish signs in its technical indicators.
Ethereum (ETH) traded around $2,600 on Tuesday after announcing the launch of Protocol, a project aimed at scaling its Layer 1, expanding Blobspace, and improving the user experience (UX).
The Ethereum Foundation announced it would be restructuring and rebranding its Protocol Research & Development team to “Protocol.”
In a blog post on Monday, the EF stated that it needs to re-evaluate its current process of “shipping protocol,” which it termed “messy” and needs a proactive response “to demands that are hard to articulate and even harder to fulfill.”
To maximize what it touts as Ethereum’s best chance at “planetary scale,” the EF is reorganizing the Protocol team to execute three key goals over the next 12 months, including scaling the L1, scaling blobs to boost data availability (DA), and enhancing the user experience (UX). Each of these goals will be spearheaded by teams led by Tim Beiko and Ansgar Dietrichs, Alex Stokes and Francesco D’Amato, and Barnabé Monnot and Josh Rudolf, respectively. Ethereum researcher Dankrad Feist will support the three groups and their leaders, serving as a strategic advisor.
“The changes we’re announcing today are a departure from our previous ways of working, but we feel these set us on a more responsive and effective path,” the EF stated.
The EF would be laying off some members of the previous PR&D team following the restructuring to make Protocol “a leaner organization” with teams that have “tighter collaboration and feedback loops.”
The development is part of a broader restructuring at the EF following the assumption of the role of co-executive directors by Hsiao-Wei Wang and Tomasz Stanczak. Sentiments around the EF have shifted positively since the restructuring, particularly after the successful launch of Ethereum’s Pectra upgrade last month.
Meanwhile, US spot Ethereum ETFs recorded $78.17 million in net inflows on Monday, stretching their streak to 11 consecutive days.
Ethereum experienced $20.8 million and $24.9 million liquidated long and short positions, bringing its total futures liquidations in the past 24 hours to $45.7 million, according to Coinglass data.
ETH jumped nearly 7% on Tuesday, rising from a brief decline toward $2,475 before it saw a rejection at a rising trendline resistance extending from May 18. ETH needs to break and hold this resistance as support to tackle the key range from $2,750 to $2,850.
ETH/USDT 8-hour chart
On the downside, the top altcoin could find support near $2,450, with the 100-period Simple Moving Average (SMA) as a dynamic support right below it. If these levels fail, ETH’s historically high demand zone near $2,250 could prevent a further decline.
The Relative Strength Index (RSI), Stochastic Oscillator (Stoch) and Moving Average Convergence Divergence (MACD) are above their neutral levels, indicating dominant bullish momentum.
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum’s roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
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