The Ethereum price was trading at $3,738 as of 5:30 am EST, up 0.13% over the last 24 hours.

The anticipation of spot Ethereum ETFs being approved in the United States fueled Ether’s price above the $3,500 psychological level, reaching a high of $3,973 on May 27.

ETH has since retreated from this level and has been displaying a choppy price action above the $3,700 level.

However, analysts believe that ETH price remains bullish even as it rests above “key support levels.”

Popular trader Daan Crypto Trades said that the price of the largest altcoin by market capitalization remains bullish on lower time frames.

In a May 29 post on the X social media platform, the trader said he was watching a falling wedge on the 30-minute ETH chart.

A falling wedge is a chart pattern that indicates a potential price increase. It’s a bullish reversal pattern that forms when an asset’s price is in an upward trend and then corrects lower.

The pattern is created by drawing two descending trend lines, one representing highs and one representing lows. The highs’ trend line has a shallower slope than the lows’, indicating that the highs are decreasing faster than the lows

“Just need to wait for the breakout as confirmation,” explained Daan Crypto Trades to his more than 370,000 followers.

Trader and founder of MN Trading Michaël van de Poppe shared an ETH/BTC chart saying that as long as the pair remains above $0.051, the bullish divergence from the RSI will remain valid as a “trend reversal has been started.”

From a technical point of view, the ETH/USD pair was consolidating in a bullish pennant on the daily chart, as shown below.

This consolidation pointed to decreasing price volatility as fighting ensues between the buyers and the sellers. The sideways movement of the relative strength index reinforces this lack of directional bias from ETH price.

However, the price strength at 63 suggested that the market conditions still favoured the upside.

A break above the pennant’s upper trendline at $3,800 would bolster the bulls to take the price toward the $4,000 psychological level. Above that, the next logical move would be a climb toward the 2021 all-time high above $4,800.

“ETH is still consolidating above the key support area,” declared crypto trader Jelle in a May 31 post on X, adding that they are “expecting the market to chop around this area for a while, at least until Monday.”

As the market awaits the launch of spot Ether ETFs, traders expect that the euphoria will catch up with retail investors, the momentum required to push ETH into price discovery.