Ethereum Price Forecast: ETH Faces Resistance at $2,750 Following Protocol Launch

Ethereum’s price hovers around $2,600, facing resistance at $2,750 after the Foundation launched a restructured Protocol project aimed at enhancing scalability. The changes come with some layoffs and a new leadership team, while trading activity has led to significant liquidations, reflecting market volatility.

Ethereum’s price is facing a significant resistance level set at $2,750, as the cryptocurrency trades around $2,600. This development follows the Ethereum Foundation’s recent restructuring and the launch of its “Protocol” project aimed at scaling Layer 1. Despite some bullish indicators emerging, ETH saw a rejection from a key resistance line, which has traders on alert.

The Ethereum Foundation’s rebranding of its Protocol Research & Development team aims to enhance the scalability of Ethereum’s infrastructure. They acknowledged in a blog post that their processes have been “messy” and highlighted a need for a more proactive approach to better serve growing demands. With the focus on improving user experience, the plan includes enhancing data availability and usability over the next year.

Key leadership for these initiatives will be provided by a mix of experienced individuals, including Tim Beiko and Ansgar Dietrichs. The foundation also noted that part of this restructuring will involve layoffs to streamline operations, aiming to foster closer collaboration among teams and refine feedback processes. This shift follows a broader change in management, with Hsiao-Wei Wang and Tomasz Stanczak now co-executive directors.

On the trading side, ETH’s fluctuations have led to approximately $20.8 million in liquidated long positions, along with $24.9 million in shorts in a 24-hour window. This brings total liquidations to around $45.7 million, indicating a tumultuous trading environment. The cryptocurrency rebounded nearly 7% but remains in a delicate balance as it attempts to consolidate above critical price levels.