Ethereum (CRYPTO:ETH) has fallen 20% from its May 2024 highs, dropping below $3,300, with bears targeting $3,000.

Despite this decline, analysts remain optimistic, citing bullish signals from the options market and the anticipated approval of spot Ethereum ETFs.

QCP analysts highlight strong interest in Ethereum options expiring in September and December, indicating confidence in a price recovery.

Liquidation clusters for Bitcoin and Ethereum suggest a potential short squeeze, which could drive prices higher.

Optimism is also fueled by the upcoming launch of spot Ethereum ETFs, expected to attract significant investment.

Bitwise's Matt Hougan predicts regulatory clarity and increased stablecoin adoption will further benefit Ethereum.