BlackRock's Staked Ethereum Trust ETF Amendment Sparks Market Volatility

BlackRock's amended filing for its Staked Ethereum Trust ETF has sent shockwaves through the cryptocurrency market. The fund's plans to hold ETH and stake approximately 70%-95% of its assets through third-party validators like Coinbase could unlock new institutional demand, potentially drawing in non-crypto investors tired of direct staking hassles.

The Ethereum price has been fluctuating wildly, dipping from recent highs around $3200 to retest a major level near $1600. Trading volume spiked 9.93% in the last 24 hours, hinting at potential buyer exhaustion. 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.

The market is overwhelmingly bearish on the ETH price right now, with a cumulative short liquidation leverage surged to $3.27 billion on February 24, while the corresponding longs were at $868 million. If ETH breaks below $1800, we could see a capitulation cascade, with investors dumping bags and pushing toward the $1500 level.