- ETH pulled back to around $3,115 even as Morgan Stanley’s ETF filing boosted longer-term market sentiment.
- Morgan Stanley pushes deeper into crypto: The banking giant filed for an Ethereum ETF with the SEC, signaling growing TradFi adoption of regulated crypto products.
- ETH faces key resistance at $3,300: Technical indicators signal cautious traders, with declining volume and a declining RSI suggesting uncertainty below major resistance levels.
Ethereum paused its new-year rally, dropping over 3% in the last 24 hours despite being up 4.5% in the last week to trade at $3,115 as of 7:05 a.m. EST. Trading above the $3,000 level, ETH is showing resilience following a turbulent Q4 2025, when its price dropped to below $2,700.
With Morgan Stanley now filing with the US Securities and Exchange Commission for a spot Ether exchange-traded fund (ETF), market sentiment is shifting. Investors are now eyeing a breakout above the $3,400 psychological resistance mark, fueled by the banking giant’s endorsement, which will likely spark a sustained Ethereum breakout.
Morgan Stanley Seeks SEC Approval For Ethereum ETF
The Wall Street giant, Morgan Stanley, has taken another step deeper into crypto, filing a registration statement for an Ethereum Trust with the US SEC, a day after the firm submitted S-1 filings for spot Bitcoin and Solana ETFs.
The move underscores the efforts of traditional financial (TradFi) institutions, which are increasingly seeking to offer digital asset products through familiar, regulated channels.
The move towards ETH is designed to track ETH’s price while passing staking rewards through to shareholders.
With over $1.6 trillion in assets, Morgan Stanley is now broadening client exposure to crypto via regulated investment products.
If approved, the filing would place the company alongside other Ether ETF issuers such as Grayscale and Fidelity, underscoring the growing appetite for digital assets in mainstream investment products.
Data from SoSoValue shows that cumulative trading volume across US ETH spot ETFs has now exceeded $12.69 billion, a signal of increased liquidity, despite a daily total net outflow of $98.45 million.
Ethereum Price Analysis: Traders Still Cautious Below $3,300
The Ethereum price chart analysis on the 3-day timeframe shows that ETH is still struggling to breach the $3,300 upwards resistance, with the recent candle pulling back from the $3,314 area.
ETH now trades slightly above the 200-day Simple Moving Average (SMA), which serves as an immediate level and a warning for bulls. If this level is breached and the price drops, the bullish prospects would be lost.
The 50-day SMA remains well above Ethereum’s price, which explains the overall bearish pressure and the asset’s inability to surge in the short term.
Meanwhile, the Relative Strength Index (RSI) indicator is now dropping to 46.39, down from the 51.73 zone, suggesting a cautious market mood.
ETH/USD Chart Analysis Source: TradingView
ETH is still holding strong above the 0.786 support area at $2,730. If the prices lose support around the 200-day SMA and sellers defend the $3,300 level to the upside, Ethereum risks a drop back to this support area, which is now acting as a cushion against downward pressure.
Trading volume has also dropped 18% to $23 billion, which shows increased selling pressure.
Conversely, if traders defend the 200-day area around $3,069, ETH could surge back, with immediate target levels and resistances within the 0.618 and 0.5 Fib areas at $3,204 and $3,537.
