Ethereum's (ETH) price has failed to see a significant rally following the SEC's approval of the Spot Ethereum ETFs. This is surprising since the approval was expected to trigger a major price surge for the second-largest cryptocurrency.

### Why ETH's Price Hasn't Rallied

One reason for the lack of a price rally could be that the potential approval news was already priced into ETH. Earlier this week, ETH's price surged nearly 20% after Bloomberg analysts Eric Balchunas and James Seyffart raised their approval odds from 25% to 75%, suggesting approval was likely.

This scenario could have led to a typical 'sell the news' event, with traders now taking profits from earlier investments. NewsBTC reported that Ethereum whales bought over 110,000 ETH ($341 million) between May 19 and 20, positioning themselves ahead of the approval news.

Historically, this pattern isn't unprecedented. Bitcoin (BTC) experienced a significant drawdown following the approval of the Spot Bitcoin ETFs. Additionally, unlike Bitcoin ETFs, which began trading immediately, the Spot Ethereum ETFs won't start trading just yet. The SEC has only approved the exchange filings (19b-4s), and the registration filings (S-1s) still need approval before trading can begin.

The delay in trading could be another reason ETH's price hasn't reacted positively. Approval of the registration filings, which may take weeks or months, might be needed to spark another rally for Ethereum and other altcoins.

Despite this, ETH has risen over 28% in the last seven days, which is significant given that it has lagged behind other major-cap cryptocurrencies recently.

### Another Reason to Be Bullish on Ethereum

The approval of the Spot Ethereum ETFs suggests that the SEC does not consider ETH a security, contrary to earlier reports. TuongVy Le, General Counsel at Anchorage Digital, noted that funds with assets comprising 40% or more securities typically register through Form N-1A or N-2, not Form S-1.

If the SEC viewed ETH as a security, it would have rejected the S-1 filings by fund issuers like BlackRock, as these Ethereum ETFs will hold ETH as their primary asset.

Currently, ETH is trading around $3,803, according to CoinMarketCap.