The crypto world was abuzz with excitement when the U.S. Securities and Exchange Commission (SEC) approved spot Ethereum ETFs, a development that had been anticipated for months.

Despite the euphoria that swept through the market, ETH's spot price reacted sluggishly, with buyers unable to capitalize on the bullish sentiment. ETH traded between $3,500 and $3,900 during this period.

The question remains: how will the ETF approval impact Ethereum's price in the short and long term?

ETH Price Surge Before ETF Approval

A closer look at ETH's four-hour price chart suggests that buyers could have seized the opportunity based on social sentiment to trigger a significant pump before the approval.

On May 20th, ETH surged 15%, rising from $3,100 to $3,700, with the Relative Strength Index (RSI) indicating strong buying pressure by reaching 93. Similarly, the Chaikin Money Flow (CMF) spiked to a monthly high of +0.53.

However, the aftermath of the ETF approval saw profit-taking, with the price dropping sharply below the $3,700 support level. This presents two potential trading scenarios for ETH, based on short-term and long-term perspectives.

In the short term, ETH could dip from $3,700 to $3,400, offering a 6.6% profit opportunity. From the $3,400 support level, ETH could embark on a strong upward move towards a new all-time high (ATH) above $4,000, providing a 12% profit.

Open Interest Suggests Short-Term Bearish Outlook

Data from Coinalyze shows that futures market participants are leaning bearish in the short term, with Open Interest dropping by 3.49% over the past 24 hours.

Shorting ETH over the next few days could yield the best profit-making opportunity on the altcoin before the Ethereum ETFs start trading, potentially driving bullish sentiment in the long term.