Less than fair Ethereum Foundation choices are penalizing the token.

The price of Ethereum (ETH) has struggled in recent months, with Zaheer Ebtikar, founder of Split Capital, attributing this underperformance to poor strategic decisions by the Ethereum Foundation. Crypto experts are questioning whether ETH can hit the $3,000 mark by October, though there are no major catalysts expected in the short term to support such a rally. A 10% price increase would be required to reach this threshold.

Optimism Amid Challenges for ETH

While immediate optimism is limited, certain upcoming events may create a positive outlook for ETH. Ebtikar suggests that 2025 could be a pivotal year for the cryptocurrency market, potentially benefiting Ethereum as well.

Strategic Missteps and Capital Flow Dynamics

Ebtikar has been vocal about Ethereum’s recent negative performance, linking it to missteps by the Ethereum Foundation. He also points to broader structural changes in cryptocurrency capital flows. Ebtikar emphasized the importance of understanding where capital is flowing within the crypto market to grasp why ETH has been lagging. He identified three main sources of capital:

1. Retail Investors: These are individuals trading on platforms like Coinbase or Binance. Ebtikar notes that retail investors are the hardest to quantify and currently have a reduced presence in the market, so they were excluded from his core analysis.

2. Private Equity: In the past, private equity from liquid funds and venture capital played a key role. However, Ebtikar argues that private equity is no longer the dominant capital source.

3. Institutional Investors: These investors are now mainly participating through exchange-traded funds (ETFs) and futures, making them the new focus for crypto asset buyers.

Ebtikar believes that strategic decisions by Ethereum’s leadership, combined with these shifts in capital flows, have dampened ETH’s recent performance.

Uncertainty Over ETH Price in October

Investment and trading communities, including forums like r/ethtrader, are debating whether ETH is a smart buy now, and if it can reach $3,000 in the near future. While Bitcoin is nearing $66,000, Ethereum and other altcoins have struggled to keep pace. Ebtikar highlights that crypto investors and private equity had already shifted away from Bitcoin, concentrating instead on altcoins like Ethereum, which many held as core assets in their portfolios.

This concentration on altcoins meant that when institutional investment flowed into Bitcoin, the rest of the crypto market, including Ethereum, didn’t benefit from the “wealth effect.” Despite ETH trading near $2,800, analysts suggest that without significant developments or announcements, a 10% price increase to $3,000 within the next two weeks seems unlikely.

Factors That Could Boost ETH Price

Ebtikar pointed to several factors that could influence Ethereum’s future trajectory. One notable consideration is a potential Trump presidency, which could introduce regulatory changes that impact cryptocurrencies. He also mentioned that a shift in the strategy or mission of the Ethereum Foundation could rejuvenate investor interest and improve the token’s performance.

Another critical driver would be the commercial launch of Ethereum-based ETFs by traditional asset managers, which could attract substantial institutional capital. This would align Ethereum with the growing trend of institutional acceptance of crypto as a legitimate asset class.

Looking ahead to 2025, Ebtikar is optimistic that it will be a defining year for cryptocurrencies, with Ethereum poised to benefit from broader market trends, including increased institutional adoption and possibly more favorable regulatory frameworks.