Ethereum Retraces to $3,900 Then Rallies 100% to New Highs
Ethereum (ETH) is trading between the $3,900–$4,400 liquidity zone after its highest weekly close in four years. Technical charts show a likely retracement to the $3,900 fair value gap—aligned with the 50–61.8% Fibonacci retracement level—before a potential 100% rally. Resistance at $4,400 must break to extend gains toward $4,583 and open the door for fresh all-time highs. A four-hour RSI below 50 and a maturing bull-flag pattern support the deeper pullback scenario. Record spot ETF inflows of 649,000 ETH last week reflect surging institutional demand, reinforcing the long-term pennant setup. Analysts view a drop to $3,900–$3,500 as a buying opportunity before Ethereum targets $8,000 in Q4. Ongoing ETF inflows and structural bullish indicators underpin a robust Ethereum outlook.
Bullish
Strong institutional demand, record spot ETF flows and bullish technical indicators underpin a positive outlook for Ethereum. In the short term, traders may see increased buying pressure around the $3,900–$3,500 zone, guided by the 50–61.8% Fibonacci retracement and a maturing bull-flag pattern. This support is likely to hold, paving the way for a rebound above $4,400 resistance. Breaking $4,400 would trigger momentum toward $4,583 and fresh all-time highs. Over the longer term, sustained ETF inflows and a long-term pennant setup suggest further upside potential, with analysts targeting $8,000 in Q4. Past reactions to similar ETF-driven rallies indicate that strong demand can drive extended bull runs, enhancing market stability and trader confidence.