Due to bearish sentiment in certain areas of the cryptocurrency space, Ethereum (ETH) is struggling to reach previous cyclical highs.
This sentiment has been exacerbated by its performance in the second quarter. However, rumors of an ETH ETF approval are causing analysts to reconsider the “Ethereum season.”
According to a report by Reuters on Wednesday, sources close to some investment firms expect the Ethereum ETF to be approved next week. These rumors align with recent comments by Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), regarding the approval process of these investment products.
Earlier this week, Gensler mentioned at the Bloomberg Investment Conference that the approval process is “progressing well.” These highly anticipated products are expected to be released this summer, with the earliest possible release in July.
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A month ago, as ETH awaited SEC approval, the price surged over 30%, rising from the $3,000 range to $3,900. 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%, recovering the $3,400 support level lost earlier this week.
Cryptocurrency analyst Jelle believes that despite expectations of “significant upside potential for ETH,” the ETF’s start is not convincing. According to him, ETH “appears poised for significant push-ups” as it tests crucial levels ahead of the rumored approval.
Analyzing on the charts, Jelle points out that the cryptocurrency is testing downward trend support within an accumulation range. If ETH climbs back to $4,000, the analyst predicts it could continue its significant rise. He indicates that this “breakout of nearly three years” in the expansion zone will usher in the “Ethereum season.”
