The recent approval of Ethereum ETFs has sparked excitement in the cryptocurrency community, but the market's reaction has been surprisingly muted. Despite the anticipation, Ethereum's price has barely moved past local resistance levels and has even retraced further. So, what's holding Ethereum back from reaching new heights?

Firstly, the approval only pertains to 19b-4s and not the more significant S-1s. This means that while a step has been taken towards greater acceptance, the bigger, more impactful approvals are still pending. The market is aware of this and is not getting too excited until the S-1s are also greenlit. It's a classic case of the market pricing in expectations – partial approval is good but not groundbreaking.

Secondly, the ETF approval was handled by the Division of Trading and Markets using "delegated authority." This implies that a commissioner could still challenge the decision within the next 10 days. This sense of uncertainty is hanging over the market, knowing that this approval might not be the final word. It feels a bit like they are trying to sneak this through, keeping the vote somewhat under the radar due to its political nature.

Lastly, 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. However, against the backdrop of broader regulatory and economic uncertainties, investors are playing it safe for now.

In conclusion, while the Ethereum ETF approval is a positive step, it's not a guaranteed ticket to the moon. Political maneuvering and further approvals are needed to solidify the move. The market is cautious, but Ethereum's fundamentals are still strong, making it a promising candidate for a future rally.