Crypto researcher Jupiter Zheng suggests that the outcome of the Ether ETF decision might not heavily impact open interest, as the market isn't heavily speculating on it.

Despite a recent 11.39% drop in Ether's price over the past month, historical data suggests that crypto analysts are optimistic about a significant price surge for Ethereum following the Bitcoin halving, expected in the coming months.

Zheng further emphasizes that a potential denial of an exchange-traded fund (ETF) for Ether might not necessarily drive prices down significantly. He argues that the market hasn't fully factored in this possibility yet, especially given that traditional funds still have Bitcoin ETFs as an entry point.

However, he notes that if a spot Ether ETF is greenlighted, particularly with staking involved, it could result in a highly bullish scenario. Such approval might trigger a cascade of short liquidations, potentially driving prices even higher.

The recent sharp decline in Ether's price has led to considerable liquidations, with approximately $39.13 million in long positions and $15.66 million in short positions liquidated in the last 24 hours alone, as per CoinGlass data. Even a minor drop to $3,250 could lead to further liquidations totaling $70.96 million.

Despite these fluctuations, Zheng predicts that the Ether futures market's open interest might not be greatly affected, given the moderate speculation surrounding the ETF outcome. Currently, Ether futures open interest stands at $12.89 billion, which is significantly lower than Bitcoin's $31.744 billion.

Meanwhile, popular trader Jelle has identified a potential bullish pattern on Ether's price chart, reminiscent of the period leading up to the previous Bitcoin halving. This observation suggests a potential surge in Ether's price following the upcoming Bitcoin halving on April 20.

Zheng echoes this sentiment, suggesting that the "ETH season" is yet to come, indicating optimism about Ethereum's future performance. However, recent reports indicate a less optimistic outlook for spot Ether ETF approval, particularly following the SEC's investigation into the Ethereum Foundation. The SEC's scrutiny has raised concerns about the classification of ETH as a security, potentially dampening hopes for ETF approval in the near term.