Ethereum Price Prediction: The Foundation Launches Five Years of 'Gentle Tightening' — Will ETH Drop Below 2600 or Rebound to 3200?

ETH-5,21%

January 30 News, the Ethereum Foundation officially announced the launch of a five-year “Moderate Contraction” transformation plan, sparking a new round of discussions on Ethereum’s price outlook. The plan will reallocate 16,384 ETH for core protocol development, privacy technology, and open verifiable system construction, while also strengthening the foundation’s financial independence and long-term stability.

Ethereum co-founder Vitalik Buterin stated in a declaration that this adjustment aims to establish a more robust balance between technological development and sustainable growth. The relevant funds will be gradually invested over the coming years to ensure Ethereum remains advantageous as a global computing platform in terms of performance, scalability, and decentralization. He will also personally oversee some projects previously driven by dedicated foundation teams.

According to disclosures, the foundation’s focus over the next five years includes zero-knowledge systems, differential privacy, encrypted communication tools, locally prioritized operating systems, and open security hardware for key scenarios. Buterin emphasized that Ethereum’s mission remains to serve users who truly need decentralized infrastructure, rather than pursuing scale expansion or short-term market hype.

On the market side, ETH prices, after experiencing a significant correction in January, are currently hovering around $2,800, down approximately 6%-7% in the past 24 hours. Risk assets are digesting the dual pressures of uneven ETF fund flows and weak macro sentiment, with prices falling back to the previous support zone of $2,700-$2,800. After derivatives liquidation, leverage levels have noticeably decreased.

From a technical perspective, ETH in February is more likely to fluctuate between $2,600 and $3,000. If ETF funds turn positive again and market risk appetite improves, the price may test the $3,200-$3,400 region; if it falls below $2,600, it could probe the weekly support band of $2,450-$2,500.

The current phase resembles a process of repair and rebalancing rather than a one-sided trend. Only when trading volume increases and ETH stabilizes above the $3,000-$3,100 range can Ethereum’s price potentially move toward a clearer direction.

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