Ethereum News Today: Ethereum's $3,900 Test Could Ignite $8K Ascent Amid Bullish Setup

Ethereum (ETH) appears to be building momentum as it navigates critical price levels that could set the stage for a retest of key support and a potential move toward new highs. Recent price action has been characterized by a consolidation phase between the $3,900 support and $4,400 resistance levels, with traders closely watching for signs of sustained bullish pressure. The altcoin’s four-hour relative strength index (RSI) remains below 50, suggesting that further downward movement could bring ETH closer to oversold conditions, potentially setting up a technical breakout [1].

A retest of the $3,900 level has been identified by market analysts as a favorable scenario for bulls. This area is supported by a cluster of resting buy bids, which could trigger stop hunts and lead to a reversal in price action. A deeper pullback to this level may help flush out weaker long positions, paving the way for a stronger recovery toward $4,500 and potentially new all-time highs in the fourth quarter. The four-hour chart shows that a sustained bullish reaction above $4,400 could extend the rally toward $4,583, a higher time-frame resistance level [1].

Meanwhile, institutional demand for Ethereum remains robust. U.S.-listed spot Ethereum ETFs recorded nearly 649,000 ETH in net inflows last week, marking the largest weekly inflow on record. This data underscores the growing institutional appetite for the asset, which has been reinforced by continued spot buying rather than leveraged speculation. Bloomberg ETF analyst Eric Balchunas has highlighted the record inflows as a sign of strong investor interest, noting that Ethereum ETFs have made Bitcoin the “second-best” crypto asset in July [1].

The bullish case for Ethereum is also supported by the development of its Layer 2 ecosystem. Networks like Arbitrum and Optimism have seen record transaction volumes, with total value locked (TVL) in Layer 2 platforms surpassing $40 billion in August. This expansion is helping to reduce gas fees and improve scalability, making Ethereum more competitive in the broader crypto market. Analysts view these developments as fundamental catalysts that could support the asset’s valuation as it competes with Bitcoin for capital [2].

Long-term technical and fundamental indicators also favor Ethereum’s upward trajectory. Prominent traders have pointed to a multi-year bullish pennant pattern that is now approaching breakout territory. Smart money accumulation during dips has continued to strengthen the thesis for a rally beyond $8,000, with analysts projecting that a pullback toward the $3,000–$3,500 range could serve as a base for a new leg higher. This potential movement would mark a significant milestone in Ethereum’s price history [1].

While short-term volatility is expected, the combination of strong ETF inflows, Layer 2 adoption, and a favorable technical setup continues to underpin Ethereum’s long-term bullish outlook. Investors and traders are closely monitoring key price levels, including the $4,150–$4,200 support and $4,400 resistance, for signs of a breakout or deeper correction. The outcome of these near-term price movements could determine whether Ethereum enters a new phase of sustained growth [2].

Source:

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

[2] Can ETH Turn $4200 Support Into a Launchpad Toward $8 ... (https://bravenewcoin.com/insights/ethereum-eth-price-prediction-can-eth-turn-4200-support-into-a-launchpad-toward-8k)