Key Points
- Bitcoin has surpassed the $97,000 mark while Ethereum is gaining strength above $2,700.
- The SEC is considering the approval of Ethereum ETF staking, sparking bullish sentiments.
Bitcoin has recently exceeded the $97,000 threshold.
In the midst of a wider market recovery, Ethereum is slowly bolstering its position above the $2,700 mark.
Ethereum ETF Staking on the Horizon
With the short-term recovery, there’s a rise in positive sentiments as the SEC acknowledges the 19b-4 filing of 21Shares’ Core Ethereum ETF for an approval of Ethereum staking.
This minor progress in Ethereum ETF staking has triggered a fresh wave of bullish sentiments.
The United States Securities and Exchange Commission (SEC) has 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 enable 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.
Institutional Support Fuels Bullish Sentiments
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.
Ethereum Price Projection: Can ETH Reach $4,000?
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.
