Ethereum News Today: Ethereum's Post-ETF Rally Falters as Key $3,800 Level Proves a Hurdle

Ethereum’s recent price action has sparked debate among traders as the cryptocurrency’s post-ETF rally shows early signs of fatigue. Following a surge to $3,800—levels last seen in early 2025—the asset now faces a critical juncture. While the macro trend remains bullish, short-term momentum indicators and on-chain dynamics suggest a potential cooling phase ahead, raising questions about whether ETH can avoid a significant pullback [1].

On the daily chart, Ethereum holds above both the 100 and 200-day moving averages, currently hovering around $3,660. The $3,300 zone, which previously acted as a breakout threshold, has transitioned into support, offering a buffer for any near-term retracement. However, the $4,000 resistance remains a formidable hurdle. Recent price action has shown upper wicks near this level, signaling accumulating selling pressure. A decisive close above $3,800 is critical to validate the rally’s continuation, with the $4,107 all-time high as the next major target. Failure to clear $3,800 could trigger a retest of $3,300, a scenario analysts describe as a “healthy consolidation” before resuming the uptrend [1].

The 4-hour chart paints a more cautious picture. Ethereum is currently consolidating within a $3,500–$3,800 range, with bearish divergence emerging between price and RSI. While prices have pushed toward $3,800, the RSI has formed lower highs, indicating waning short-term momentum. A breakdown below $3,500 could accelerate a correction toward $3,200, a level aligned with prior 4-hour structure and the origin of the recent bullish move. Traders are advised to monitor volume and candlestick strength for confirmation of either outcome [1].

On-chain data highlights mixed signals. Funding rates on major exchanges have turned positive, reflecting growing speculative demand for long positions. However, these rates remain moderate compared to historical peaks observed at market tops. Analysts note that while current levels suggest bullish sentiment, they are far from the euphoric extremes that typically precede sharp corrections. A rapid escalation in funding rates could act as an early warning of overheating conditions, even as the asset retains room for further gains [1].

Market participants are also tracking broader ecosystem dynamics. Reduced trading volumes in Ethereum-linked altcoins, including layer-2 solutions and DeFi tokens, indicate a temporary shift in investor focus. This contrasts with earlier months when Ethereum’s ecosystem-driven gains fueled broader altcoin rallies. Meanwhile, Bitcoin’s consolidation phase introduces cross-chain uncertainty, complicating ETH’s near-term trajectory.

The critical focus remains on Ethereum’s ability to stabilize within key support/resistance zones. A sustained break below $3,800 could amplify bearish pressures, potentially testing the $3,500 psychological barrier. Conversely, a rebound above $4,100 may reignite risk-on sentiment, drawing parallels to prior ETF-driven Bitcoin rallies. Traders are urged to monitor on-chain metrics such as open interest and funding rates for insights into institutional positioning and liquidity shifts [1].

For now, Ethereum appears poised between continuation and correction, with technical and on-chain signals pointing to a likely consolidation phase. The market’s next move will hinge on whether bulls can reassert control above $4,000 or if bears gain dominance in the $3,200–$3,500 range.

Source: [1] [Ethereum Price Analysis: ETH Rally Cools, Can it Dodge a Major Correction?] [https://www.coinrank.io/]

[1] [Ethereum Price Analysis: ETH Rally Cools, Can it Dodge a Major Correction?] [https://coinmarketcap.com/community/articles/6880e62c6671d3258eca325f/]