Ethereum (ETH) Battles $3,000 as BlackRock Signals Launch of Staking ETF for Enhanced Yield
Ethereum (ETH) is trading for about $3,000 right now. It has dropped more than 1.3% in the past 24 hours, confronting more selling pressure.
Quick overview
- Ethereum is currently trading around $3,000, having dropped over 1.3% in the last 24 hours amid selling pressure.
- BlackRock plans to launch a staked Ethereum ETF, which could significantly influence institutional investment in Ethereum.
- The proposed ETF aims to attract yield-focused investors by providing exposure to Ethereum's price while generating income through staking.
- Technical analysis indicates that Ethereum must reclaim the $3,100 resistance level to avoid a potential drop towards $2,500.
EthereumETH/USD is trading for about $3,000 right now. It has dropped more than 1.3% in the past 24 hours, confronting more selling pressure. This price movement comes after BlackRock, a $13.5 trillion asset management company, said it plans to establish a staked Ethereum ETF. This might change how institutions invest in the digital commodity.
BlackRock Expands Ethereum ETF Product Line with Staking-Enabled Fund
About 15 months after launching its main iShares Ethereum Trust ETF (ETHA), BlackRock has signed up for a new staked Ethereum exchange-traded fund in Delaware. This Delaware name registration is one of the first things that needs to be done before the Securities and Exchange Commission can approve the company’s plans.
The proposed staked ETF would go well with ETHA, which has brought in a remarkable $13.1 billion since it started in July 2024. At first, BlackRock didn’t want to stake in ETHA because it was too complicated to run and there were too many rules that weren’t clear. In July, the company did send the SEC a proposal to amend the rules so that staking could be added.
Eric Balchunas, an analyst with Bloomberg ETFs, said that the new product is registered under the Securities Act of 1933, which means that it has to be very clear and protect investors in every way possible. This submission comes after REX-Osprey and Grayscale both launched identical products in September and October.
ETH Staking Component Could Attract Yield-Focused Institutional Investors
A staked Ethereum ETF is a great investment because it gives you exposure to the price of Ethereum while also generating constant income, making it a total-return product. Blocknative statistics shows that staking ETH right now gives an average annual return of about 3.95%.
This extra source of income could make Ethereum ETF products more appealing to institutional investors who are interested in yield but have shunned them in the past since they don’t make money. When the market was unstable, the higher returns made staked ETFs more appealing as investments.
The timing seems good because the SEC under the Trump administration is now more open to crypto exchange-traded products. The commission has set up a general listing standard that speeds up the clearance process by getting rid of the need to look at each case separately. About 70 crypto items are still waiting for government approval after the shutdowns in October and November.
ETH/USD Technical Analysis Points to Critical Support Test at $3,000
Ethereum’s price movements show that buyers and sellers are having a hard time approaching the $3,000 mark, which is important for the mind. After failing to stay above $3,050, the cryptocurrency recently challenged support at $2,870, which shows that bearish pressure is still there.
Technical signs point to tough times ahead. ETH is trading below both the $3,100 mark and the 100-hourly Simple Moving Average. On the hourly chart, a crucial bearish trend line is keeping prices from going over $3,100. The hourly MACD indicator is losing momentum in the bearish zone, but the RSI has gone over 50, which means that some people are still interested in buying.
Ethereum Price Prediction: Bulls Must Reclaim $3,100 or Risk Drop to $2,500
There will probably be a lot of selling pressure at the 20-day exponential moving average around $3,365 if the market tries to recover. If ETH can’t break over the $3,100 resistance level, it looks like it will drop again near the original support level at $2,940. If the price goes below this level, losses might speed up toward $2,880, and more losses could target $2,750 to $2,820.
On the other hand, a clear break over $3,100 might start a recovery rally toward $3,150, with resistance levels at $3,200 and $3,320 after that. If the price stays above the 20-day EMA, it would mean that the market has rejected the recent drop below $3,350. This might send ETH toward the 50-day simple moving average around $3,824.
If sellers drive the price below $2,946, the negative outlook gets worse, and the price might drop quickly toward $2,500. Traders need to keep a careful eye on the $3,000 level because this important support zone will probably decide where Ethereum goes in the near future, especially with BlackRock’s aspirations to expand its business.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save