Ethereum price today: $1,940
- Cboe BZX Exchange filed a proposed rule change with the SEC to allow staking within Fidelity’s spot Ethereum ETF.
- Grayscale and 21Shares have also made similar filings with the SEC to stake their Ethereum ETF holdings.
- ETH could test the $2,850 key resistance if it recovers above $2,200.
Ethereum (ETH) is up 3% on Tuesday following Cboe BZX’s filing with the Securities & Exchange Commission (SEC) for Fidelity to permit staking within its spot Ethereum ETF.
Fidelity intends to stake its Ethereum ETF
Cboe BZX Exchange filed a 19b-4 with the SEC on Tuesday to allow staking within the Fidelity Ethereum Fund (FETH).
“Based on discussions with the Sponsor, the Exchange proposes to amend several portions of the ETH ETP Amendment No. 2, as amended, in order to allow the staking of ether held by the Trust,” the filing states.
Prior to Fidelity, Grayscale and 21Shares also filed to seek approval from the SEC to permit staking within their respective ETFs.
Staking involves earning passive income by using crypto assets to contribute to a blockchain’s security.
The latest filings from US spot Ethereum ETF issuers to include staking in their products follow recent administrative changes at the SEC, including the resignation of the agency’s former Chair, Gary Gensler, on January 20..
Before ETH ETF approval in July 2024, most issuers removed staking from their initial filings upon rumors that the Gensler-led SEC wasn’t comfortable with the feature.
However, the agency may reconsider its stance, considering President Donald Trump and the new SEC administration under acting Chair Mark Uyeda leaning towards pro-crypto regulations.
Nate Geraci, President of the ETF Store, has previously predicted that US spot Ethereum ETFs have the potential to surpass Bitcoin ETFs if the SEC allows issuers to stake their holdings.
Ethereum ETFs posted a fourth consecutive day of negative flows on Monday, recording $37.50 million in outflows.
Ethereum Price Forecast: ETH eyes recovery above $2,200
Ethereum saw $131.39 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of liquidated long and short positions was $83.31 million and $48.09 million, respectively.
ETH found support near $1,750 — a level obtained by measuring the percentage change between the $2,850 and $2,200 rectangular channel and projecting it downward.
ETH/USDT daily chart
If the top altcoin holds the $1750 support and reclaims the $2,200 level, it could test the $2,850 key resistance.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have retreated from their oversold regions, indicating a decline in the bearish pressure.
A daily candlestick close below $1,500 will invalidate the thesis and potentially send ETH toward the $1,000 psychological level.
