According to U.Today, the recent approval of the Ethereum ETF was not met with the anticipated market reaction. Despite the approval, Ethereum has struggled to surpass the local resistance level and has even retraced further. The current approval only pertains to 19b-4s and not the more significant S-1s. This means that while a step has been taken toward greater acceptance, the bigger, more impactful approvals are still pending. The market is aware of this and is not showing much excitement until the S-1s are also approved. This is a classic case of the market pricing in expectations — partial approval is good but not groundbreaking.
The ETF approval was handled by the Division of Trading and Markets using 'delegated authority.' This suggests that a commissioner could still challenge the decision within the next 10 days. There is a sense of uncertainty in the market, knowing that this approval might not be the final word. It seems like they are trying to sneak this through, keeping the vote somewhat under the radar due to its political nature.
These factors create a situation where the Ethereum ETF approval, while positive, is not a guaranteed ticket to the moon. There remains political maneuvering, and further approvals needed to solidify the move. Additionally, against the backdrop of broader regulatory and economic uncertainties, investors are playing it safe for now. Despite the lack of momentum, Ethereum is still looking well positioned for a rally; above numerous key technical resistances, cheap network fees might attract more activity and a fair price level ahead of the major $4,000 threshold.