On February 12th, the Ethereum price witnessed a significant inflow to reach $2,730, registering an intraday gain of 5.5%. Contrary to broader market consolidation, this uptick can be attributed to 21Shares filing a proposal with the SEC to allow staking within its Core Ethereum ETF. The news bolsters ETH’s potential to rebound and recuperate bullish momentum.
Key Highlights:
- A support trendline intact since June 2022 drives the current uptrend in Ethereum price.
- Cboe BZX Exchange has officially submitted a proposed rule change to the U.S. SEC, aiming to amend the structure of the 21Shares Core Ethereum ETF to incorporate Ethereum staking.
- The daily chart analysis shows immediate resistance at $2,800 and $3,000.
21Shares Files First-Ever ETF Staking Proposal with SEC
On February 12th, Wednesday, the crypto investment firm 21Shares put forth a proposal to introduce staking for Ethereum ETFs.
According to James Seyffart, an ETF analyst at Bloomberg, the filing requests an amendment to the 21Shares Core Ethereum ETF that would allow staking of the Ether held by the Trust under Cboe BZX Rule 14.11(e)(4). This would introduce a yield-generating component to the ETF structure, potentially making Ethereum-based investment products more attractive to institutional investors.
NEW: I believe this is the first ETF to file with the SEC and request the ability to permit Staking. @21Shares pic.twitter.com/fZIqDcd7PE
— James Seyffart (@JSeyff) February 12, 2025
If approved, this could set a precedent for future Ethereum ETFs, potentially making staking rewards a standard feature in crypto-backed investment products. The development will further bolster Ethereum adoption and drive demand pressure to its native cryptocurrency, ETH.
Ethereum Price 18% Short From A Major Support Retest
In the last two months, the Ethereum price experienced a notable correction from $4,100 to $2,736, accounting for a 33% loss. The falling price gave a bearish breakdown from key EMA slopes (20, 50, 100, and 200) and horizontal support of $2,800.
With an intraday gain of over 5%, the ETH price tested the breached $2,800 support as potential resistance. If the sellers continue to defend this level, the altcoin could plunge 18% and retest the long-coming support trendline around $2,300.
Until the dynamic support is intact, the Ethereum price could prolong the current uptrend.
