Ethereum Foundation Pushes Protocol Upgrade as ETH Eyes $2,660 Breakout

Ethereum's price action heats up as the network's governing body unveils ambitious protocol improvements—just as ETH tests a crucial resistance level.

The $2,660 barrier becomes today's make-or-break moment for bulls. Meanwhile, the Foundation's timing raises eyebrows—nothing like a shiny protocol initiative to distract from last quarter's gas fee fiascos.

Will this be the catalyst for ETH's next leg up, or just another 'coming soon' feature that gets delayed until the next bull run? Traders watch, wallets ready.

TLDR

• Ethereum (ETH) price is trading around $2,600 after facing resistance near $2,650-$2,660 levels
• The Ethereum Foundation launched Protocol, a restructuring initiative to scale Layer 1 and improve user experience
• ETH experienced a 7% jump on Tuesday but was rejected at a rising trendline resistance from May 18
• US spot Ethereum ETFs recorded $78.17 million in net inflows on Monday, extending their streak to 11 consecutive days
• Technical indicators including RSI, Stochastic, and MACD show bullish momentum above neutral levels

Ethereum price is trading around $2,600 on Tuesday following the announcement of the ethereum Foundation’s Protocol initiative. The token has been testing key resistance levels while showing mixed technical signals.

ETH started a recovery wave from the $2,470 zone earlier this week. The price climbed above the $2,500 and $2,540 resistance levels during the rally.

The cryptocurrency cleared the 50% Fibonacci retracement level of the downward move from $2,788 to $2,470. However, bears remain active below the $2,660 resistance zone.

Ethereum Foundation Restructures with Protocol Launch

The Ethereum Foundation announced a major restructuring of its Protocol Research & Development team. The team has been rebranded as “Protocol” with new leadership structure.

The foundation stated it needs to re-evaluate its current process of shipping protocol updates. The existing system was described as “messy” requiring a proactive response to difficult demands.

⚡️ NEW: The Ethereum Foundation is shaking things up — its Protocol R&D team is now just "Protocol," with a renewed focus on L1 scaling, blob improvements, and better UX. 🚀🔧 #Ethereum #CryptoNews #Web3 pic.twitter.com/jmApIKx5Qq

— Nayeem Jamaly Mishu 'The S0AS' 🐴 (@JamalyNayeem) June 3, 2025

Protocol will focus on three key goals over the next 12 months. These include scaling LAYER 1, expanding Blobspace for data availability, and enhancing user experience.

Tim Beiko and Ansgar Dietrichs will lead the Layer 1 scaling efforts. Alex Stokes and Francesco D’Amato will handle Blobspace expansion. Barnabé Monnot and Josh Rudolf will focus on user experience improvements.

Ethereum researcher Dankrad Feist will serve as strategic advisor across all three groups. The restructuring aims to create tighter collaboration and feedback loops.

The foundation will lay off some members of the previous team. This MOVE is designed to make Protocol a leaner organization with more focused teams.

Technical Analysis Shows Mixed Signals

ETH jumped nearly 7% on Tuesday from a brief decline toward $2,475. The rally was halted at a rising trendline resistance extending from May 18.

The price broke below a short-term rising channel with support at $2,580. ETH is now trading above the 100-hourly Simple Moving Average.

Key resistance levels remain at $2,620, $2,650, and $2,660. The $2,660 level aligns with the 61.8% Fibonacci retracement of the recent downward move.

A clear break above $2,660 could send the price toward $2,720 resistance. Further gains might target the $2,780 or $2,880 levels.

On the downside, initial support sits NEAR $2,545. The first major support zone is located at $2,500.

The Relative Strength Index, Stochastic Oscillator, and MACD are above neutral levels. These indicators suggest dominant bullish momentum despite the recent rejection.

Ethereum futures saw $45.7 million in total liquidations over 24 hours. Long positions accounted for $20.8 million while shorts totaled $24.9 million.

US spot Ethereum ETFs recorded $78.17 million in net inflows on Monday, marking 11 consecutive days of positive flows.