Ethereum News Today: Ether faces key $3,900 test ahead of potential 100% rally to $8,000

Ether (ETH) is currently navigating a critical phase in its price trajectory, with technical analysts and traders closely monitoring key liquidity levels between $3,900 and $4,400. The altcoin’s price has experienced more than 11% volatility in recent trading sessions, driven by a recent low of $4,224 and a focus on the $4,150 support level and the $4,000 fair value gap [1]. This region, identified as a 0.50–0.618 Fibonacci retracement between $4,100 and $3,900, is viewed as a strategic setup for buy bids and has been described by trading platform Kiyotaka as a “giant cluster of resting bids stacked all the way down to $3.9K” [1].

A deeper retest of the $3,900 level is considered a constructive scenario for bulls, as it could flush out weaker long positions and build momentum for a stronger recovery toward $4,500 and potentially beyond [1]. On the upside, Ether faces immediate resistance near $4,400, an area where liquidity is concentrated and could act as a short-term magnet. A sustained bullish reaction above this level could push ETH toward $4,583, a higher time-frame resistance that may serve as a stepping stone to new all-time highs [1]. The four-hour relative strength index (RSI) remains below 50, suggesting further downward movement before ETH reaches oversold conditions, potentially setting the stage for a reversal [1].

Longer-term projections remain bullish, with some analysts forecasting a pullback to the $3,000–$3,500 range before a potential 100% rally to $8,000 [1]. According to prominent trader Merlijn, every dip has been accompanied by smart money accumulation, reinforcing the idea that institutional and savvy investors are positioning for a larger move higher [1]. This trend is supported by record inflows into US-listed spot Ether ETFs, which recorded nearly 649,000 ETH in net inflows last week—the largest weekly inflow on record [1]. Such institutional demand suggests that long-term bullish sentiment remains intact despite short-term volatility.

The growing institutional interest in Ether has also been acknowledged by senior ETF analyst Eric Balchunas of Bloomberg, who described Ether ETFs as the “ETF of the Month” in July due to their strong performance and investor appetite [1]. This shift in attention has positioned Ether as a top contender in the crypto space, with increasing recognition from traditional financial markets.

As Ether continues to test key support and resistance levels, the technical and institutional landscape remains supportive of a continuation in the bullish trend. A successful retest of $3,900 and subsequent recovery could validate a multi-week rally and signal the beginning of a new price chapter for the second-largest cryptocurrency [1].

Source: [1] ETH charts predict $3.9K retest, then a 100% rally to new highs (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)