Key Insights:
- Ethereum news coverage now centers on BlackRock’s staked Ethereum ETF amendment, which could unlock new institutional demand.
- ETH price hovers near critical support as bearish pressure and ETF outflows mount.
- DeFi resilience and rising staking activity hint at potential upside despite weak sentiment.
Latest Ethereum news shows the ETH price has plunged back to levels not seen since the last bear market. The drop happened as BlackRock announced an amendment that could flip the script for Ethereum.
The trillion-dollar asset management fund submitted an amended S-1 filing for its iShares Staked Ethereum Trust ETF (ticker: ETHB), on February 24, aiming for a NASDAQ listing.
The trust plans to hold ETH and stake approximately 70%-95% of its assets through third-party validators like Coinbase to earn staking rewards.
Additionally, it will use a 40,000-share basket creation/redemption mechanism, supporting cash or in-kind ETH redemptions, with only authorized participants able to transact directly with the trust.
The base fee for this Ethereum ETF will remain at 0.25% annually, and then drop to a reduced rate of 0.12% for the first $2.5 billion in assets during the initial 12 months after listing.
This move signals BlackRock’s push to mainstream staked ETH, potentially drawing in non-crypto investors tired of direct staking hassles.
Ethereum Price Hits Historical Lows Despite Positive Ethereum News
The ETH price has retested a major level near $1600, a zone that has held as a floor multiple times in past cycles. The asset price dipped from recent highs around $3200, forming lower highs and lows over the last month.
Trading volume also spiked 9.93% in the last 24 hours, hinting at potential buyer exhaustion. As of the time of writing, Ethereum price was down 4.62% and trading at $1,827.
If ETH breaks below $1800, we could see a capitulation cascade, with investors dumping bags and pushing toward the $1500 level.
However, bulls have defended this $1500-$1600 level so far, and with RSI dipping into oversold territory below 30. Traders are now eyeing this as another buying zone, but weak hands might fold first.
CoinGlass Liquidation Map for Ethereum shows the cumulative short liquidation leverage surged to $3.27 billion on February 24, while the corresponding longs were at $868 million.
This discrepancy shows the market is overwhelmingly bearish on the ETH price right now because traders anticipate a further drop.
Below the current price ($1827), there were virtually no buy walls to hold up the price. On the other hand, there was a notable sell wall around $2,026, which means if buyers stepped in, the Ethereum price may see a relief rally to this level before drastically falling again.
Ethereum News: Weak Institutional Demand Raises Red Flags
As price struggles to remain above key support, weak institutional demand amplified the capitulation risk. Flows into existing Ethereum ETF products have slowed with $49.48 million in outflows in the last 24 hours..
BlackRock’s ETH trust (ETHA) saw outflows, and options skew has tilted bearish, showing that professionals are hedging downside.
This has left retail investors holding the fort. However, if BlackRock’s ETF gets a greenlight, it could spark an inflows frenzy and reverse the bleed.
Yet, Ethereum’s DeFi ecosystem has offered a confidence boost despite the price slide. The total value locked (TVL) stabilized at $58 billion, with protocols like Aave and Uniswap maintaining strong utilization rates.
Stablecoin marketcap on the Ethereum network sat at over $160 billion with over 36 million ETH (30% of total coins in circulation) remaining staked.
Liquid staking derivatives have surged 15% in adoption, proving DeFi users have built resilience against volatility. Ethereum gas fees dropped with its price, making on-chain action cheaper for everyday users.
BlackRock’s filing has come at a pivotal moment, potentially catalyzing ETH’s next leg up if approved. But with price teetering on support, degens have braced for either moonshot or more pain.