The latest rumbling posits that the game will feature three factions and will take place several hundred years prior to the events of Morrowind, Oblivion, and Skyrim. Also, some sort of official announcement is supposedly scheduled for May. Following that, the source claims, the Elder Scrolls MMO will have a "presence at E3" in June.
Bethesda has yet to comment, but we'll bring you the latest info as it happens.
[Thanks to Matt for the tip!]