What a Potential Funding Gap Could Mean for Ethereum
June 28, 2026
A recent warning from former Ethereum Foundation member Trent Van Epps highlighted a looming funding gap for Ethereum (ETH) within the next 3 to 9 months. Van Epps emphasized that the Foundation is intentionally reducing its control over funding, aiming to distribute power and legitimacy more broadly throughout the ecosystem. As a result, the Foundation’s treasury, established during the network’s early days, is intentionally diminishing.
Although the Foundation’s treasury has historically supported crucial shared resources such as client development and transitioning from proof of work to proof of stake, its intentional reduction poses a challenge. The core development funding requirements amount to around $30 million per year, a relatively small sum compared to Ethereum’s $200 billion market capitalization and the trillions of dollars in stablecoin settlements processed by the network.
Despite the evident need for funding, the lack of a clear institution to bridge the emerging gap remains a concern. Even as the Foundation recently downsized its workforce by 20% and experienced executive departures, no prominent entity has emerged to take on the role of filling the growing void in funding. Van Epps recognized this and established the Protocol Guild, a collaborative funding mechanism for Ethereum’s core developers. While the Guild has raised approximately $40 million over four years, Van Epps acknowledged that this amount is ultimately insufficient.
Van Epps pointed out a prevalent challenge known as the free-rider problem, wherein stakeholders may benefit from shared resources without contributing financially, giving them a competitive advantage over those who provide funding. Overcoming this coordination hurdle among significant stakeholders has proven to be a genuinely taxing endeavor, despite a shared understanding of the importance of collective support.
In addition to the urgent funding matter, Van Epps stressed the need for a narrative that links ETH as an asset directly to the dominance of the Ethereum Virtual Machine (EVM). The EVM serves as the foundation for approximately 90% of the total value locked in crypto, including various layer-2 networks.
Examining ETH’s recent performance, the cryptocurrency experienced a significant downtrend after breaking a rising trendline that had been intact since February. Following this trendline breach, ETH swiftly dropped below $1,900, $1,800, and eventually settled around $1,557. The presence of a death cross from November 2025 across major moving averages, along with the RSI at 28.98 indicating oversold conditions, suggests the possibility of a bounce attempt amidst an overarching downtrend. Traders are keeping a close eye on the 20-day EMA at $1,707.57 and the 50-day EMA at $1,864.11 for signs of a recovery or sustained momentum.
