On Wednesday, March 12, the crypto market showcased low volatility trading, evidenced by neutral candle formation in Bitcoin. The lack of buying has limited recovery potential in the majority of major altcoins including ETH. However, the SEC acknowledgment on Franklin Templeton’s Ethereum Exchange-Traded Fund (ETF) staking proposal has sparked a renewed interest in ETH.
Key Highlights:
- SEC has confirmed receipt of Franklin Templeton’s ETF staking proposal.
- A downsloping slope of daily Exponential Moving Average (20, 50, 100, 200) hints high-momentum selling pressure.
- The Ethereum price breakdown below the $2,100 floor set a potential downfall of 20% and seeks support at $1,500.
SEC Acknowledges Franklin Templeton’s Ethereum ETF Staking Proposal
On March 12th, Wednesday, the United States Securities and Exchange Commission (SEC) confirmed the receipt of Franklin Templeton’s Ethereum Exchange-Traded Fund (ETF) staking proposal.
The news highlights Franklin Templeton’s ambition to introduce staking mechanisms within an Ethereum ETF framework. While the SEC’s acknowledgment does not imply approval, it marks the beginning of the regulatory review process, potentially setting a precedent for other asset managers eyeing similar offerings.
If approved, this development could set a new precedent for U.S.-regulated crypto ETFs by integrating staking rewards into fund structures. The move will also increase institutions’ access to Ethereum staking yields, potentially driving further ETH adoption.
Ethereum Price Correction Breaks Major Supo
Over the past week, Ethereum price has experienced a sharp decline, plummeting from $2,320 to its current trading value of $1,905—a significant 17.8% drop. This decline has also led to a substantial reduction in its market capitalization, now standing at $230 Billion.
The recent downturn saw Ethereum breach the critical $2,100 support level, allowing sellers to strengthen their grip on the market. Historically, this level has served as a key accumulation zone for buyers, but the breakdown could now flip it into a resistance zone, potentially extending the downward trajectory.
If this bearish outlook holds, Ethereum could decline further by another 20%, testing the next crucial support at $1,500. However, the latest daily candle formation shows a long-tail rejection at the $1,800 mark, indicating a possible reversal attempt.
Should the price reclaim the $2,100 floor, the buyers could counter-attack and recuperate the bullish momentum for a fresh recovery leap.
