Can a $1 Billion Rescue Plan Save Ethereum From a Massive ETH Price Collapse?

Ethereum is facing one of its most difficult periods in recent years as internal leadership concerns, weakening token performance, and growing market pressure continue shaking confidence across the ecosystem.

Now, a new proposal from Ethereum developer Dankrad Feist is drawing major attention after suggesting the creation of a completely new billion-dollar organization designed to help stabilize and reshape Ethereum’s future.

At the same time, traders are increasingly worried that ETH could soon fall below the critical $2,000 support level.

Ethereum Faces Growing Leadership Concerns

The debate around Ethereum intensified after reports revealed that at least nine prominent leaders, researchers, and contributors have recently departed from the Ethereum Foundation. The exits triggered fresh criticism from several well-known crypto figures who believe Ethereum’s leadership structure is struggling to adapt to the rapidly changing crypto market.

Among the names mentioned were Tim Beiko, Josh Stark, Barnabé Monnot, Trent Van Epps, and Carl Beek.

Simon Dedic, an early Ethereum supporter and founder of Moonrock Capital, described the situation as “a red flag.”

According to Dedic, Ethereum has spent too much time focused on ideology while competitors aggressively expanded their business ecosystems and user adoption.

He argued that the market has now moved beyond what he described as crypto’s earlier “idealistic cypherpunk phase.”

Laura Shin Criticizes Ethereum’s Direction

Crypto journalist and Unchained podcast host Laura Shin also criticized Ethereum’s broader strategy. She pointed toward changes in Ethereum’s tokenomics that weakened the project’s once-popular “ultrasound money” narrative.

Shin argued that Ethereum increasingly prioritized ideology while ignoring market-driven incentives tied to the ETH token itself.

She warned that investors have become frustrated as Ethereum faces growing competition from faster and more scalable blockchain ecosystems.

The criticism comes during a period when several rival networks are aggressively competing for developers, users, stablecoins, AI applications, and decentralized finance activity.

Developer Proposes New $1 Billion Ethereum Organization

Amid the growing criticism, Ethereum developer Dankrad Feist introduced a bold proposal that could significantly reshape the ecosystem’s future structure.

Feist suggested creating an entirely separate organization that would remain economically aligned with Ethereum but operate independently with stronger accountability and execution.

According to the proposal, the organization would launch with at least $1 billion in funding. The structure would include a dedicated leadership team, with a governing board and self-sustaining staking revenue. Also it include governance mechanisms capable of adjusting funding over time

Feist explained that the goal would be creating an organization capable of making faster operational decisions while remaining financially aligned with Ethereum’s long-term success.

He admitted the proposal may take years to gain consensus across the Ethereum community but argued that major structural reform may eventually become necessary.

The idea quickly sparked debate across crypto markets, with some users supporting stronger leadership while others warned that Ethereum’s decentralized identity could become weakened.

Ethereum Price Structure Weakens

While governance debates continue, Ethereum’s price action is also showing increasing weakness. ETH is currently trading near $2,113 after recently breaking below a major ascending trendline support that had held the recovery structure together since March.

The breakdown has increased bearish pressure across the market.

Analysts now believe Ethereum faces a critical technical moment. If ETH fails to reclaim the broken trendline near $2,190, the next major downside support could emerge closer to the $1,720 region.

That possibility is now raising concerns that Ethereum could soon revisit sub-$2,000 price levels for the first time in months.