The Ethereum market is on the brink of a significant development that could alter its trajectory dramatically. The approval of Ethereum Spot Exchange-Traded Funds (ETFs), previously expected by July 18, is now anticipated to be announced on July 23. This delay has kept the market on edge, but the potential approval marks a pivotal moment for Ethereum and the broader cryptocurrency market.   Ethereum Price Jumps 7% Amid the High Expectation of the Spot ETF Launch   The approval of these ETFs is highly awaited, with major asset managers such as BlackRock, VanEck, and Franklin Templeton poised to receive the green light. This development signifies the U.S. Securities and Exchange Commission's (SEC) move towards mainstream financial acceptance of digital assets. As a result, Ethereum (ETH), the world's second-largest cryptocurrency by market cap, has already experienced a price increase of 7% following the  following updates from Bloomberg analysts, now trading around $3,397 as of this writing.    ETH/USDT Price Chart | KuCoin    Crypto analyst Andrew Kang predicts that ETH could rise to $3,600 pre-ETF approval due to the current market relief rally. However, he cautions that post-approval, ETH might see a decline in its ETH/BTC pair, indicating that Bitcoin could perform stronger in the short term due to underlying market dynamics, according to a report from Beincrypto.     “​​ETH heading close to $3600 pre-ETF on this relief rally. Still believe ETHBTC will be down for a while after ETF approval/launch. Bitcoin stronger than anticipated in the face of poor market structure dynamics leads me to believe that there are likely some unannounced major developments being front-run,” Kang wrote on X (Twitter).   ETH/BTC Ratio Ticks Up Above 0.5 with ETF Approval Expectation  Source: Kaiko Asset Prices.  The Ethereum spot market has cooled as traders await the ETF launch. Since the initial SEC approval, ETH prices have fallen by nearly 20%. Despite this, the ETH/BTC ratio remains elevated at 0.05, higher than the pre-approval levels of 0.045, suggesting Ethereum could outperform Bitcoin after the ETFs are launched, according to a report from Kaiko Research.   Liquidity conditions have improved, with ETH's 1% market depth consistently around $230 million, up from below $200 million before the SEC's initial approval. This increased liquidity could further improve with the official ETF launch, as seen with Bitcoin earlier in the year.   However, perpetual futures markets for ETH have shown a different trend. Funding rates have halved since May, indicating less conviction from traders, and open interest has dropped from $11 billion post-approval to current levels, reflecting uncertainty about the exact timing of the ETF launches. Implied volatility on near-term options contracts has also increased, signaling that traders are hedging against potential price swings in the short term, according to the report from Kaiko Research.   What’s the ETH Price Prediction Before and After the ETF Approval Before the ETF approval, Ethereum's price is expected to see a bullish trend. The relief rally could push ETH close to $3,600, The anticipation of the ETFs is driving positive sentiment, and any further confirmation or leaks about the approval could see this upward momentum continue. Post-approval, the market might experience a "sell the news" phenomenon. Despite the long-term positive implications of ETF approval, short-term traders might take profits, leading to a temporary dip in ETH prices. However, in the medium to long term, the increased liquidity, acceptance, and regulatory clarity provided by the ETFs are likely to support a bullish trend for Ethereum. Analysts suggest that ETH could consolidate and resume its upward trajectory, potentially reaching new highs as mainstream financial institutions and retail investors gain easier access to the cryptocurrency through these ETFs.   As per Eric Balchunas, an ETF expert at Bloomberg, trading for the ETH ETFs is expected to begin on July 23, 2024. Market analysts predict significant inflows due to the ETF approval, possibly surpassing initial expectations.   The Ethereum ETFs will commence trading just before the Bitcoin 2024 conference, which could boost interest and discussion around Ethereum. Conclusion  In conclusion, the potential approval of Ethereum Spot ETFs on July 23 marks a significant milestone. While short-term volatility is expected, the long-term outlook remains positive, with increased liquidity and broader acceptance driving Ethereum's growth in the financial markets, following the similar pattern of Bitcoin ETF approval back in January.   Read More: Ethereum Soars Past $3,300: ETF Approvals Expected This Week?