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As the cryptocurrency community anticipates the upcoming decision on Ethereum (ETH) exchange-traded funds (ETFs), legendary trader John Bollinger's latest take on the ETH market has garnered significant attention. John Bollinger, a technical analyst, is renowned for creating the Bollinger Bands — a popular technical analysis tool.

In a tweet, Bollinger stated that he has made multiple inquiries concerning Grayscale Ethereum Trust (ticker ETHE). In recent days, the Grayscale Ethereum Trust has been a prominent indicator, fueling anticipation about Ethereum ETF approval. 

Grayscale Investments hopes to convert its Grayscale Ethereum Trust ( ETHE) to an ETF if the SEC approves it. As speculation increased, the fund's discount to its underlying Ethereum holdings fell to less than 7% from 20.5% on Friday and up to 56% last year, according to Bloomberg. 

A similar pattern was observed in January before the SEC approved the conversion of Grayscale's Bitcoin Trust. 

While expectations continue for potential SEC approval, Bollinger feels that the market has already priced in most of the news regarding the Ethereum ETF, and the resultant discount, which is thought to be in the context of Grayscale's ETHE, is largely gone.

With the news accounted for, Bollinger perceives that the current market move is overextended, indicating that the price may have reached a peak that could be followed by a correction. 

Owing to this inference, the Bollinger Bands creator said in a tweet, which he tagged ETHUSD and ETHBTC, that he had trimmed his position.

Ethereum (ETH), the second largest cryptocurrency by market cap, has risen more than 29% this week and was trading up 3.92% in the last 24 hours to $3,873 at press time.

As the market anticipates the Ethereum ETF decision, sentiment is a mix of optimism and caution. While the potential approval of an ETF could boost ETH prices, the latest take from the Bollinger Bands creator might suggest caution due to the possibility of a "sell-the-news" event, where prices drop after the announcement due to investors taking profits.