Ethereum (ETH) is the second-largest crypto by market capitalization after BTC and it is witnessing a bullish momentum lately after it dropped below $3K a few days ago despite analysts tempering expectations around the U.S. Securities and Exchange Commission (SEC) approving spot ETH exchange-traded funds (ETFs) in May. 

Analysts had previously anticipated the SEC greenlighting Ethereum ETFs in May, which would mirror the trajectory of the regulator's approval of Bitcoin ETFs in January. However, the lack of public dialogue between the SEC and ETF applicants has cast doubt on this timeline.SEC was expected to approve ETH ETFs on May 23, but now reports suggest that th

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Despite this potential setback, Ethereum's price has demonstrated stability lately, rebounding over 5.5% in the past seven days. As of this writing, ETH is trading at $3,250.45, which is up 2.6% over the past 24 hours. Its market cap stands at  $396.6 billion, cementing its position as the second-largest crypto digital asset.

Ethereum Price (CoinGecko)

ETH Technical Analysis

Ethereum is slowly gaining bullish momentum. On the weekly chart, Ethereum has been trapped in a bullish flag or descending channel pattern. After a massive bearish breakdown on April 13th past a horizontal support zone at around $3200 zone, which saw prices plunge to $2,850, ETH has staged a great recovery and stability. The last three weekly candlesticks closed bearish, but the most recent one formed a long-legged doji, signaling a potential uptrend. The Relative Strength Index (RSI) is currently at 60, indicating a recent buying spree and suggesting further upside movement before reaching overbought territory.

ETHUSD Weekly Chart (TradingView)

On the daily chart, Ethereum is slowly gaining bullish momentum at a crucial resistance zone, and is slowly breaking out. The last three consecutive daily candles, the current daily candle included, closed bullish and the current is bullish so far past the $3,200 resistance level. Prices are likely to rally and fill the fair value gap left during the April 12th's bearish run, potentially testing the bullish flag trendline resistance and the 78% Fibonacci retracement level. 

ETHUSD Daily Chart (TradingView)

However, if bears regain control, prices could drop to the recent low of $2,850, although the chances of this are minimal. The RSI of 49 suggests ample room for further buying before reaching overbought levels.

On the 4-hour chart, Ethereum has broken out of the resistance zone and is slowly trading bullish. The next immediate resistance is the $3,280 zone, followed by the fair value gap, which is likely to attract prices higher. The next support level is the recent low of $3,158.

ETHUSD 4-Hour Chart (Tradingview)

As Ethereum continues its upward trajectory, the main thing in key focus is the developments surrounding potential SEC approvals of spot ETH ETFs. Regardless of the regulator's decision, the cryptocurrency's strong fundamentals and growing adoption suggest that its bull run may have further room to extend.