The Ethereum price is trading at $3,669 as of 3:00 am EST, down 3.2% over the last 24 hours. The ETH price is turning down a day after the United States Securities and Exchange Commission (SEC) approved eight spot Ethereum exchange-traded funds (ETFs) applications.

On May 23, the U.S. regulator approved the 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This approval provided for rule changes, allowing spot Ether ETFs to be listed and traded on approved exchanges.

However, trading will not start until ETF issuers get their S-1 registration statements approved before they can be launched. The SEC only began engaging with issuers about their S-1 forms recently. It’s unclear how long this process will take but some analysts are speculating that it could take weeks or even months.

Bloomberg Senior ETF analyst James Seffart thinks it could happen within a couple of weeks if hard work is put in but the process has taken months in the past.

Ether’s price, which had been rallying this week ahead of the approval, turned down immediately after the approval as traders turned it into a sell-the-news event.

How low can ETH go?

Ethereum’s price over the last three days has been characterized by a series of higher highs and lower lows, suggesting high volatility in Ethereum markets.

This has led to the appearance of a bearish broadening triangle on the four-hour chart. Note that a four-hour candlestick close below the lower boundary of the triangle at $3,665 would confirm a bearish breakout from the triangle and a continuation of the downtrend.

The next levels to watch on the downside are the $3,500 psychological level and the 50-day exponential moving average (EMA), which is currently at $3,457.

Other lines of defense will emerge from the 100-day EMA at $3,290 and the 200-day EMA at $3,217 before returning to the psychological level of $3,000.

This would represent a 20% drawdown from the current price.

The RSI's downward trend supported this pessimistic outlook. The price strength at 53, down from 77 on May 23, suggests that bears have taken control of the price.

On the upside, a four-hour candlestick close within the triangle would mean that the bulls are agressively defending the support at $3,665. Increased buying from this level would them push the price higher toward the $3,800 resitance level and later toward the upper boundary of the triangle at $4,000.

Breaching this level woud confirm a bullish breakout from the governing chart pattern, ushering the smart contracts token into a sustained recovery.