Dragonfly Warns Vitalik's Slimmer Ethereum Foundation Is Bearish for ETH at $2,100

The story began May 21 with nine senior Ethereum Foundation exits and Dankrad Feist's $1 billion proposal for a price-focused organization. Vitalik Buterin responded May 24-25 by committing to a smaller EF under the CROPS framework that sells less ETH and prioritizes decentralization. Dragonfly Capital now labels this neutrality-first approach bearish, arguing it lacks the commercial focus needed to compete with rivals. ETH remains near $2,100 after a 57% drop from its 2025 peak, with $470 million in ETF outflows and the ETH/BTC ratio at a multi-year low of 0.027.