Is the future of Ethereum promising? These four factors may drive the coin price to big pump.

Original author: 1912212.eth, Foresight News

Original Title: Is Ethereum about to take off? Four major factors may become price boosters.

The author once wrote an article titled "Has the Wealth Effect Seriously Diminished? Can Ethereum Survive the 'Midlife Crisis'?" detailing the huge challenges Ethereum faces in this cycle, including a lack of innovation, a loss of direction, and an oversized team, which have led to severe criticism from the community. Vitalik has also been brought down from his pedestal and criticized harshly. However, the market rebounded after extreme pessimism. In April this year, ETH rose from $1,400 to nearly $2,800.

Is the fundamental outlook for Ethereum improving? What noteworthy changes are happening recently with Ethereum, which has been heavily criticized?

Ethereum Spot ETF Continues to See Net Inflows

Once upon a time, the Ethereum spot ETF was in a long-term state of net outflow. However, since April 22 of this year, market funds have started to flow in continuously. As of June 5, there was only a seven-day net outflow, while the rest were all net inflows. There were even four days with a single-day net inflow exceeding 90 million USD, and the number of days with a single-day net inflow exceeding 60 million USD occurred seven times.

SoSoValue data shows that the cumulative net inflow of the U.S. Ethereum spot ETF has risen to 3.23 billion dollars, and there is still no sign of a slowdown.

Discussing Cooperation Based on Ethereum with Sovereign Wealth Funds of Major Countries

Ethereum co-founder and Consensys CEO Joe Lubin said on Tuesday that his company is in talks with "major sovereign wealth funds and banks" in a "very powerful" country about a possible Ethereum-based build, involving Layer 1 and Layer 2 infrastructure. However, the details of the partnership have not yet been disclosed, and the market's reaction to the news is more based on expectations. If the news is finally confirmed and announced, it will undoubtedly play an important role in boosting market confidence.

In addition, Consensys acted as the lead investor in SharpLink Gaming's $425 million financing, and Joseph Lubin will serve as the chairman of SharpLink's board after the completion of this financing round.

Bitcoin has a strategy of continuous accumulation, and then more companies follow suit, driving strong buying pressure on the coin price. Ethereum should have companies to drive purchasing power.

Nasdaq-listed SharpLink plans to use the proceeds from the funding to purchase ETH, Ethereum's native asset, as a major treasury reserve asset.

According to Bloomberg, Joe Lubin stated that about six months ago, under the influence of the most prominent advocates for accumulating digital assets, he decided to establish a company to invest in Ethereum's native token. "I was having dinner with Michael Saylor at the time, doing some research, and started discussing with colleagues how cool this idea was," Lubin, founder and CEO of Ethereum software infrastructure company Consensys, said in an interview. "No one in our company had previously delved into this direction. Later, we realized that this strategy didn't seem particularly dangerous."

Ethereum Foundation lays off staff and cuts operational expenses

On June 3rd, the Ethereum Foundation finally took action to lay off some of its staff and restructure its research and development team, renaming the department "Protocol" to focus on the core challenges of protocol design. This change is in response to ongoing community criticism of the Foundation's stewardship and strategic direction. According to the Foundation, the restructured Protocol team will work around three priorities: scaling the scalability of Ethereum's underlying network, advancing blobspace scaling as part of the data availability strategy, and improving the user experience.

The foundation mentioned in the announcement that "some members of the R&D team will no longer continue to stay on" and encouraged other teams to absorb these talents. The number of layoffs has not been disclosed. In addition, the foundation stated that the restructured team will focus on improving the upgrade timeline, technical documentation, and transparency of research. Co-executive director Hsiao-Wei Weng expressed on social media X that he hopes the new structure will drive core projects forward more efficiently.

However, some said that key issues remain unaddressed, with Multicoin Capital co-founder Kyle Samani commenting on Twitter, saying, "Please note that the definition of focus usually means less, not more, especially when goals should not conflict with each other. But when we look at Goal 3 (i.e., L1, L2 network expansion, and improve user experience), Goal 1 (i.e., layoffs) and Goal 2 (i.e., clear division of responsibilities) are contradictory."

The Ethereum Foundation unveiled a new fiscal management policy in June 2025 that aims to ensure long-term financial sustainability. According to the official blog, the Foundation has set annual operating expenditures of no more than 15% of total assets, and plans to gradually reduce it to 5% over the next five years. In addition, the Foundation will maintain a 2.5-year operating expenditure buffer, regularly evaluating whether to sell ETH to replenish fiat reserves. This policy reflects the Foundation's prudent approach to the management of its vaults, especially in a volatile market environment where the price of ETH is volatile.

The foundation also emphasized that on-chain funds will only be deployed in audited, decentralized DeFi protocols, focusing on low-risk strategies such as staking and lending. This initiative not only reduces capital risks but also resonates with Ethereum's "Defipunk" principles and privacy protection concepts.

In the past, the Ethereum Foundation's coin-selling actions were often monitored and reported, causing dissatisfaction within the community. Now, the Foundation has finally chosen to adopt a more prudent attitude in responding to spending issues. These measures indicate that the Foundation is laying the groundwork for the long-term development of Ethereum by reducing operating costs and optimizing resource allocation, while also providing the market with a sense of reassurance in terms of alleviating selling pressure.

Gas limit adjusted to 60 million

Recently, Ebunker tweeted that Ethereum is expected to raise the block Gas limit to 60 million with 15% of validators' support. The higher the Gas limit, the more transactions the block can process, and the network speed will also increase accordingly. Among various scaling paths, increasing the Gas Limit can be said to be the most immediate approach. Moreover, raising the Gas Limit does not require a system upgrade or code modification; as long as PoS nodes continuously "signal" support when producing blocks, it can promote the network to gradually adopt this change.

Although Ethereum has historically scaled through L2 and Rollups, it has also created significant problems. "L2 greatly weakens ETH's value capture and can easily lead to a fragmented situation." This was stated by Pi Ma, the founder of Continue Capital, during a voice conversation.

The expansion of the mainnet is imperative. At the ETHGlobal Prague conference, Vitalik stated that Ethereum will expand its L1 scale by about 10 times within a year, and then "take a breather" before the next leap.

The peak TPS of Ethereum has currently increased to about 60, and it remains to be seen to what extent Ethereum will improve in the future.

Summary

Ethereum is undergoing a multifaceted transformation in terms of technology, funding, and ecology. The foundation's financial reforms and research and development restructuring lay the groundwork for its long-term development, and the collaboration between Consensys and sovereign wealth funds signals a new role for Ethereum in global finance. Adjustments to gas limits and inflows of ETF funds inject vitality into network efficiency and market momentum.

Despite the short-term selling pressure and cost controversy, Ethereum's technical advantages and institutional endorsement make it a leading position in the crypto market. In the future, Ethereum will need to continue to make efforts in technical optimization and community governance to meet the challenges of competitors such as Solana. 10x Research recently analyzed ETH's performance and wrote, "While we expected a pullback a few days ago, the actual trend is far more resilient than expected. From a technical point of view, Ethereum is approaching the apex of a large triangular consolidation structure, eventually breaking out of direction, potentially pushing the price towards $2,000 or $3,000. This move will be very critical and may be triggered by a change in fundamentals, or simply by the entry of a large buyer."