The Ethereum market is on the cusp of a significant transformation with the approval of the first spot Ethereum exchange-traded fund (ETF) in the United States. This development has sent shockwaves through the cryptocurrency community, with many analysts predicting a price surge in the coming weeks.

Ethereum's price has been trending below the crucial $3,700 resistance level, but recent gains have given investors hope. The coin has increased by about 5% from last week's lows, and the optimism is palpable. However, for more gains in the short to medium term, prices need to close decisively above this liquidation level.

The approval of the spot Ethereum ETF is a significant milestone, and analysts are predicting a positive impact on the market. The product could be live and accessible to investors and institutions within two weeks, providing a new avenue for exposure to Ethereum.

One analyst has noted that the potential impact of Grayscale selling its Ethereum holdings (ETHE) once spot ETFs go live would be minimal, providing stability and confidence in the market. The current state of Ethereum and the broader Ethereum ecosystem were not prepared for the SEC to fast-track the product's approval this year.

In the case of Bitcoin, prices rose sharply from mid-October as markets anticipated the spot ETF going live in January. After launch, it became a "sell the news" event, briefly pushing down prices. Ethereum prices are turning lower after significant gains posted on May 20, but the analyst believes that the current state of the market is different.

The analyst also pointed out that the discount in ETHE is narrow and within the 1-3% range, unlike Grayscale's GBTC before the approval of spot ETFs. This implies that even when a spot Ethereum ETF goes live, selling pressure would be minimal.

Only time will tell whether Ethereum will soar or plunge in the next two weeks. From a regulatory perspective, the clarity that comes after the release of the spot Ethereum ETF could spark demand, allowing more institutions to gain exposure. K33 analysts forecast that the product will attract between $3.1 billion and $4.8 billion in net inflows within the first five months of trading.