Ethereum News Today: Ethereum Eyes $3,400 Pullback Unless $3,800 Breaks—Van de Poppe Notes Bearish Divergence

Ethereum’s price trajectory has come under scrutiny from market analyst Michaël van de Poppe following a recent $1,200 rally to a peak of $3,850, which he identified as exhibiting a bearish divergence. The technical indicator suggests weakening buyer momentum, marked by a lower high despite bullish price action. Van de Poppe highlighted this as a warning sign, increasing the likelihood of a pullback to $3,400 if Ethereum fails to reassert itself above $3,800 [1]. This critical threshold represents a psychological and structural benchmark; a breakout could invalidate the bearish outlook, while a breakdown may trigger a cascade of stop-loss orders and margin calls.

The $3,400 level, previously a resistance point turned support, is positioned as a potential retest in a worst-case scenario. Van de Poppe noted that this level could serve as a rational entry point for buyers anticipating a rebound, provided the correction is deemed a buying opportunity. The analyst’s focus underscores the interplay between technical patterns and liquidity conditions, with intraday volatility expected to play a pivotal role in Ethereum’s near-term direction [2].

Broader market dynamics complicate the technical outlook. Ethereum ETFs have experienced significant inflows, including a record $534 million addition on a single day, contrasting with Bitcoin ETF outflows. Meanwhile, Ethereum’s unstaking pressure—reaching nearly $2 billion with a nine-day delay—introduces short-term uncertainty as large holders liquidate positions. These factors, combined with the bearish divergence, highlight a fragmented investor sentiment, with altcoins like BNB showing relative strength [3].

Van de Poppe’s analysis aligns with macroeconomic skepticism, as recent geopolitical developments, such as the U.S.-Japan trade deal, failed to drive sustained rallies in major cryptocurrencies. The muted response underscores that technical constraints may outweigh fundamental catalysts in the immediate term. For Ethereum, the $3,800 level remains a litmus test for institutional participation. A decisive close above this threshold with strong volume would signal renewed buying pressure, while a sustained close below $3,400 could accelerate a broader selloff [1].

The market’s reaction to this divergence will hinge on volume patterns and order flow dynamics. As Ethereum approaches these pivotal levels, on-chain data will provide critical insights into buyer resilience or capitulation. Given Ethereum’s influence as an altcoin bellwether, its performance could shape risk-on or risk-off sentiment across the crypto market in the coming weeks. Traders are advised to monitor the $3,800 retest closely, with institutional adoption developments—such as partnerships between Coinbase and PNC—remaining secondary to technical conditions [3].

Source:

[1] [BlockchainReporter] [https://blockchainreporter.net/bearish-divergence-on-ethereum-eyes-3400-pullback-unless-3800-breaks-reports-van-de-poppe/]

[2] [Moomoo] [https://www.moomoo.com/news/post/55807948/bitcoin-ethereum-xrp-slide-despite-us-japan-trade-deal]

[3] [CoinStats] [https://coinstats.app/news/d2f471496bf5c0ddd04dd6abcb43d0382cc41ef732c3fdff90eebafa125bad54_PENGU-%26-REKT-ALL-TIME-HIGHS%2C-HUGE-ETH-ETF-INFLOWS%2C-BNB-OUTPERFORMS-MARKET/]