Key Notes

Key Notes:

SEC acknowledges Ethereum ETF staking proposal, marking potential first-of-its-kind approval.Institutional ETH inflows rise, with Fidelity adding $24.47 million and Grayscale offloading $5.45 million.ETH price challenges 20-day EMA, with Fibonacci targets set at $3,114 and a potential surge toward $4,000.Crucial support levels stand at $2,600 and $2,224, with a bullish outlook dependent on ETF approval.

As the crypto market prepares for a new liftoff, Bitcoin BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B has breached the $97,000 mark. Amid the broader market recovery, Ethereum ETH $2 769 24h volatility: 5.0% Market cap: $333.82 B Vol. 24h: $18.23 B is gradually gaining strength as it sustains above the $2,700 mark.

With the short-term recovery, positive sentiments arise as the SEC acknowledges the 19b-4 filing of 21Shares’ Core Ethereum ETF for an approval of Ethereum staking. The minor progress in Ethereum ETF staking has driven a new spree of bullish sentiments.

Will this lead to a new, will this drive the next parabolic rise in Ethereum? Let’s find out.

Recently, the United States Securities and Exchange Commission (SEC) acknowledged the 19b-4 filing for approval to stake Ethereum held in an Ethereum ETF. The request was filed by Cboe BZX Exchange on behalf of 21Shares.

The institutional fund is seeking approval for ETH staking and currently holds $19.85 million worth of Ether, making it the smallest ETF fund in the U.S. Ethereum spot market.

The SEC publicly acknowledged the receipt of 21Shares’ Ethereum ETF staking proposal. If approved, this would be the first-ever Ethereum ETF to offer staking features in the United States.

The staking feature will allow investors to earn additional profits by staking Ethereum. Additionally, the document highlights the Trust’s intent to introduce models such as staking-as-a-service or delegated staking in the market.

This acknowledgment brings the Ethereum ETF staking feature one step closer to approval. With the pro-crypto stand of Trump’s administration, the easier regulations will likely approve the request.

On February 19, institutional support continued to rise. The daily total net inflow stood at $19.02 million, with Fidelity being the only purchaser.

The Fidelity Ethereum ETF acquired $24.47 million worth of ETH, driving its accumulated net inflow to $1.54 billion. As of February 19, Fidelity holds a net asset of $1.27 billion.

Meanwhile, Grayscale remains the sole seller, offloading $5.45 million worth. Since the launch of Ether ETFs, Grayscale has liquidated $3.99 billion worth of ETH from its trust. It currently holds $3.54 billion, making it the second-largest Ethereum ETF.

On the daily chart, ETH maintains dominance above local support trendlines, aiming for a bullish reversal. It is gaining momentum after reversing from the 23.6% Fibonacci level at $2,644.

Currently, ETH trades at $2,736, marking an intraday recovery of 0.78%. The ETH price trend is challenging the 20-day EMA line at $2,784, signaling a possible bullish comeback. The daily RSI has bounced from the oversold region, nearing the halfway level.

However, the prevailing downtrend has resulted in a death cross between the 50 and 200 EMA lines and the 100 and 200 EMA lines. Based on Fibonacci levels, a bullish breakout could challenge the 50% Fibonacci level at $3,114.

With increased bullish sentiment and the potential approval of Ethereum ETF staking, ETH’s possibility of reaching $4,000 significantly increases. On the flip side, crucial support levels for ETH stand at $2,600 and $2,224.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.

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