Ethereum, the king of altcoins, is experiencing unstoppable growth, recently rising to $3,700 and boasting a staggering market capitalization of $443 billion.

However, Ethereum's upward trajectory faces regulatory hurdles as the US Securities and Exchange Commission (SEC) delays decisions on the approval of Ethereum ETFs from industry giants like BlackRock and Fidelity.

The SEC's concerns about the vulnerability of Ethereum's Proof-of-Stake (PoS) system to fraud and manipulation have raised concerns, leading to a second delay in making decisions on BlackRock's iShares Ethereum Trust proposal.

Likewise, Fidelity's Ethereum Spot ETF remains in limbo as the SEC seeks public feedback on the approval process, highlighting the complexities of regulatory oversight in a rapidly evolving crypto environment.

Cryptocurrency experts and investors are divided on the approval of the Ethereum ETF. Optimists are drawing parallels with the recent approval of a Bitcoin ETF and predicting potential SEC approval for an Ethereum ETF by May, citing growing institutional interest in Ethereum and its expanding use cases as catalysts for regulatory adoption.

Instead, skeptics urge caution, citing ongoing uncertainty surrounding the SEC's stance on Ethereum ETFs and the inherent challenges of navigating regulatory hurdles in the crypto space.

Despite this regulatory uncertainty, investors remain focused on Ethereum price action and the upcoming Dencun upgrade, which is expected to happen over the next one or two weeks. Technical analysis shows an ascending trendline for ETH/USD with significant support around $3,600 and resistance levels at $3,720 and $3,780. Breaking through these resistance levels could provide an opportunity for Ethereum to challenge the major resistance at $3,850 and potentially break out to $3,920. Sustained upward momentum could push Ethereum towards the critical $4,000 mark, setting the stage for further bullish momentum and potential price discovery.

The Dencun update looks like a catalyst for Ethereum's growth, offering scalability, security and efficiency improvements that could further increase its appeal to both investors and developers. The upgrade is expected to improve Ethereum's competitiveness in the decentralized finance (DeFi) and Web3 ecosystems, positioning it as the backbone of blockchain innovation and decentralized applications (dApps).

While regulatory concerns and short-term fluctuations are inevitable, Ethereum's long-term prospects appear promising, bolstered by investor confidence and the ongoing evolution of DeFi and Web3.

As the digital economy continues to evolve, Ethereum's role as an innovative force in smart contracts, decentralized applications, and digital asset management solutions will expand, ushering in a new era of decentralized finance and blockchain-based solutions. However, the recent rise in Ethereum prices has not been without setbacks. On March 6, the price of Ethereum fell 10%, following in the footsteps of Bitcoin's volatile price movement. While this correction may have dampened short-term sentiment, technical indicators suggest the bulls are not done yet.

According to the analysis, Ethereum is trading around $3,500 and the 100-hour simple moving average with immediate resistance on the upside near the $3,550 level. The first major resistance is near the $3,600 level or the 61.8% Fibonacci retracement level of the downward move from the $3,827 swing high to $3,211 low. If Ethereum manages to break through this resistance zone, it could potentially resume its bullish momentum and reach the $3,820 level, with the next stop for the bulls being the $3,950 resistance. Any further success could set the stage for testing the coveted $4,000 mark.

While the possibility of additional losses cannot be ruled out, with initial support on the downside near the $3,440 level and major support near the $3,400 zone, the overall sentiment remains bullish, supported by the anticipation of the Dencun update and the growing adoption and use of Ethereum domestically. DeFi and Web3 ecosystems.