Ethereum Price Forecast: Fidelity plans to add staking to ETH ETF amid yield debate

Ethereum price today: $1,880

• Fidelity has filed with the SEC to allow staking in its Ethereum ETF.
• The filing follows disagreements concerning the latest EIP-8363, which aims to reduce rewards if the staking ratio climbs above a threshold.
• ETH continues range-bound movement within the key EMAs boundary.

Asset manager Fidelity has filed with the US Securities and Exchange Commission (SEC) to permit staking in its Ethereum (ETH) exchange-traded fund (ETF), the Fidelity Ethereum Fund (FETH), which holds over $898 million in net assets.

Apart from ETH reserved for redemptions, expenses and liquidity needs, Fidelity stated that the fund could stake its entire holdings under normal conditions, without any minimum requirements. The fund aims to stake the assets leveraging its custodians Anchorage Digital Bank, BitGo Bank and Fidelity Digital Assets.

According to the filing submitted on Tuesday, the fund will retain 85% of gross staking rewards while the remaining will be treated as staking fees shared among sponsors, custodians and node operators.

Net rewards from the staking activity will first be used to settle the fund's expenses, while the remainder will be distributed quarterly in cash in accordance with the IRS Revenue Procedure 2025-31.

EIP-8363 staking reward debate continues

The filing comes at a time when the Ethereum community is facing strong division concerning staking rewards. Community members are debating the viability of EIP-8363, which proposes tapering net staking yield linearly to zero if the staking ratio climbs above 50%.

While proponents state that the proposal will help solve ETH inflation and improve security, critics argue it could hurt decentralized finance (DeFi) and hamper the "ETH is productive" capital narrative, which is the key selling point to institutional investors.

The total value of staked ETH has been in an uptrend since January, rising to 41.81 million ETH on Wednesday, with an additional 2.33 million ETH in the entry queue.

Meanwhile, Ethereum ETFs have posted two consecutive days of modest net outflows worth $16.3 million after last week's inflows of $244.9 million, its best week since mid-April, according to SoSoValue data. The products' total net assets remain subdued by the bearish crypto market at $10.48 billion.

Ethereum technical outlook: ETH remains in EMAs boundary

Ethereum saw $32.3 million in liquidations over the past 24 hours, led by $23.4 million in short liquidations.

On the daily chart, ETH holds above the 20 and 50-day Exponential Moving Averages (EMAs) at $1,884 and $1,864, respectively, hinting at a mildly constructive near-term tone while it remains capped by the 100-day EMA resistance at $1,922.

Momentum signals are muted, with the 14-day Relative Strength Index (RSI) hovering near a neutral 51 and the Stochastic Oscillator (Stoch) at 54, suggesting consolidation rather than a decisive directional move.

On the topside, immediate resistance is located at the 100-day EMA, followed by a horizontal barrier at $1,961, before more distant levels at $2,172 and $2,431.

On the downside, initial support is reinforced by the 20 and 50-day EMAs. Further support levels are at $1,809 and $1,701, with deeper cushions at $1,507 and $1,415 in the event of a broader pullback.

(The technical analysis of this story was written with the help of an AI tool. Know more.)