Due to bearish sentiment in certain areas of the cryptocurrency field, Ethereum (ETH) is struggling to reach its previous cycle high. Its performance in the second quarter has further intensified this sentiment. However, rumors of the approval of an ETH ETF have analysts optimistic about an “Ethereum season.”
According to a report by Reuters on Wednesday, sources close to some investment firms expect the ETH ETF to be approved next week. These rumors align with recent comments made by Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), regarding the approval process for these investment products.
Earlier this week, Gensler mentioned during the Bloomberg Investment Conference that the approval process is progressing smoothly. These highly anticipated products are expected to be released this summer, possibly as early as July.
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A month ago, while awaiting SEC approval, the price of ETH rose over 30%, from $3,000 to the $3,900 range. Subsequently, the second-largest cryptocurrency dropped to the $3,200 support area.
However, the recent ETF rumors have had a positive impact on Ethereum. Following the news, ETH rose by 2.5%, reclaiming the $3,400 support level it lost earlier this week.
Cryptocurrency analyst Jelle believes that despite expectations of “significant upside potential for ETH,” the ETF launch is not yet convincing. According to him, ETH appears to be “ready for a major push-up” as it tested crucial levels prior to the rumored approval.
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Analyzing the chart, Jelle points out that the cryptocurrency is testing the downside trend support within a range. If ETH returns to $4,000, the analyst predicts that it could continue to rise significantly. He suggests that this breakthrough in the expansion zone will mark the beginning of an “Ethereum season.”
