Ethereum is facing renewed scrutiny after one of its lead Geth developers, Péter Szilágyi, accused the Ethereum Foundation of secretly funding a rival development team and ultimately firing him for confronting leadership over the issue. The controversy, surfacing amid a broader internal restructuring of the Foundation, coincides with renewed bullish momentum for ETH, fueled by a whale’s $11 million leveraged long position and a breakout from a bullish technical formation that has traders eyeing a potential rally toward $3,670. Ethereum Turmoil: Geth Lead Developer Alleges Secret Fork Funded by Ethereum Foundation Péter Szilágyi, a lead developer of the Geth client — the most widely used software for running Ethereum nodes — has accused the Ethereum Foundation (EF) of covertly funding a competing Geth development team without informing the original developers. Szilágyi made the explosive claims in a series of posts on X, alleging that the EF not only backed a second Geth team housed within Nethermind, another Ethereum development firm, but did so while actively undermining the original team. According to Szilágyi, the Ethereum Foundation encouraged Geth contributors to seek employment at other companies, proposed salary cuts for the team, and even offered $5 million for them to spin off into a separate private entity. “EF started and funded a second Geth team inside Nethermind,” Szilágyi wrote. “One ‘100% independent fork from us, with no intended collaboration,’ according to Josh Stark, and they didn’t tell either me, Felix, or Martin until I found out in November 2025.” He later corrected the date to 2024, brushing it off casually: “2024, whatev :).” Szilágyi also claimed that he was dismissed from the Ethereum Foundation following a one-on-one meeting with Stark, a foundation representative, during which he confronted Stark about the secret initiative. The Geth (Go Ethereum) client plays a crucial role in Ethereum’s infrastructure, powering a significant portion of validator nodes that secure the network. Any disputes or fractures in its development could have wide-ranging implications for Ethereum's stability and future development. The revelation of a second, independently operating Geth team raises serious questions about transparency within the Ethereum Foundation and its internal governance structure. The fact that the original Geth developers were allegedly kept in the dark has fueled criticism that the Foundation is drifting away from its values of openness and decentralization. The move to fund a forked client may also be part of a broader diversification strategy to reduce reliance on a single client — a technical and security risk that has long been acknowledged by Ethereum stakeholders. Still, the way this strategy has reportedly been executed has drawn fire. Background: A Foundation in Flux These allegations come amid major upheaval within the Ethereum Foundation. On June 2, the EF announced a significant restructuring, laying off staff and revamping its core development focus. According to a public statement, the Foundation is now prioritizing scalability improvements, such as increasing “blobspace” to enhance Ethereum's throughput, and streamlining user experience , long considered one of Ethereum’s weakest points. The Foundation also revealed a shift in its funding approach. Rather than selling Ether (ETH) on the open market to fund development, the EF will now rely on returns generated from decentralized finance (DeFi) platforms. This includes lending and borrowing protocols, which will be leveraged to grow its treasury without exerting sell pressure on the ETH token. Additionally, the Foundation has committed to more financial transparency, pledging to issue regular reports on operational expenses and reserves. The Ethereum community has reacted with a mix of concern and confusion. Developers and community members alike are questioning the ethical and practical ramifications of maintaining secret teams working on mission-critical infrastructure without broad stakeholder awareness. Some have defended the move as a necessary step toward client diversity — a key pillar of Ethereum’s long-term roadmap. Others view it as a betrayal of the core values that built Ethereum’s open-source legacy. What’s Next for Ethereum? The fallout from Szilágyi’s claims is still unfolding, but it has already triggered a fresh wave of scrutiny around Ethereum governance and the Ethereum Foundation’s decision-making processes. As the network gears up for future upgrades, including further Ethereum 2.0 advancements, the stability and trustworthiness of its development base will be under the spotlight. Whether the community rallies around calls for greater transparency or fractures further along ideological lines remains to be seen. For now, Szilágyi's posts have peeled back a layer of Ethereum’s polished exterior to reveal the complex and sometimes messy realities of building decentralized infrastructure — especially when billions of dollars and ideological stakes are on the line. Ethereum Whale’s $11M Leveraged Long Sparks Market Optimism as Bull Flag Breakout Targets $3,670 In related news, Ethereum has captured market attention once again after a massive leveraged long position and a decisive breakout from a key technical formation suggest that a powerful rally could be underway. A high-stakes $11.15 million bet from a crypto whale, growing bullish sentiment in Ethereum’s options market, and a textbook bull flag breakout are combining to support projections of a 30% surge toward the $3,670 level by the end of June. Whale Goes Big: $11M ETH Long at 25x Leverage On June 10, an Ethereum whale opened a $11.15 million long position with 25x leverage, amounting to a high-risk bet on 4,000 ETH at an entry price of $2,758.35. The position immediately attracted the crypto community’s attention—not only for its size but for its timing, as ETH was on the verge of a major breakout. By June 11, Ethereum’s price had surged past $2,850, translating to an unrealized profit of around $366,600 for the trader. However, the leveraged nature of the trade means that the margin for error is razor-thin, with the position carrying a liquidation threshold at $2,466. Despite the risk, the scale and precision of the trade suggest strong conviction that ETH’s recent momentum will continue. According to on-chain data source Ted Pillows, the whale’s action has acted as a catalyst for renewed market optimism. Further supporting the bullish case, Ethereum’s options market has seen a sharp turn in sentiment over the last 48 hours. The 25-delta skew—which measures the pricing difference between bullish call and bearish put options—has plummeted into negative territory. ETH options 25 delta skew (all) (Source: Glassnode) According to Glassnode data: The 1-week skew dropped from -2.4% to -7.0% The 1-month skew fell from -5.6% to -6.1% This deepening negative skew indicates that traders are increasingly betting on short-term upside. The demand for call options, which profit from rising prices, now vastly outweighs demand for protective puts, suggesting that traders expect ETH’s price to rise substantially in the coming days or weeks. Bull Flag Breakout Hints at 30% Rally Toward $3,670 Ethereum’s breakout from a classic bull flag formation on the daily chart is providing strong technical justification for the growing bullish sentiment. The pattern—a brief consolidation following a sharp upward move—is typically viewed as a continuation signal by technical analysts. ETH/USD daily price chart. (Source: TradingView) ETH’s recent surge above the upper trendline of the bull flag, coupled with rising trading volume, signals a likely continuation of the uptrend. Based on the measured move of the flagpole, analysts project a potential 30% rally from current levels to around $3,670 by the end of June. The rally has been fueled in part by macroeconomic developments, including fresh hopes of interest rate cuts by the US Federal Reserve following favorable inflation data. This macro backdrop is helping to push capital back into risk assets like cryptocurrencies. Ethereum’s price has doubled in just over two months, thanks to a combination of technical upgrades and organizational shifts. The Pectra upgrade, implemented in early May, introduced significant scalability and performance enhancements, especially related to data availability and blobspace expansion. These upgrades are designed to support Ethereum’s long-term goal of becoming a fully scalable and efficient base layer for decentralized applications. Meanwhile, the Ethereum Foundation’s restructuring in early June has sparked renewed investor confidence. The organization’s pivot to a more transparent and yield-driven funding model—leveraging DeFi rather than selling ETH on the open market—has been seen as a sustainable step forward. Layoffs and realignment of internal teams were met with mixed reactions, but ultimately served to streamline focus on scaling and user experience. Road Ahead: $4,000 in 2025, $6,000 by Next Cycle? While the near-term target of $3,670 remains the focus, longer-term forecasts are even more optimistic. Standard Chartered has reiterated its projection of ETH reaching $4,000 by 2025. Some fractal-based analyses, drawing parallels between Ethereum and historical gold price action, go even further, predicting ETH could hit between $5,000 and $6,000 in the next major cycle. Additionally, the growing anticipation for spot Ethereum ETFs in the United States and strong investor inflows into Ethereum-linked products in overseas markets are helping reinforce ETH’s emerging narrative as a digital asset with both utility and long-term investment appeal.