Ethereum Eyes $4,100 Rally After Testing $3,800 Resistance
Ethereum has rallied nearly 70% over the past month, reclaiming key support above $3,000 on the back of Bitcoin’s new highs. On Monday, ETH peaked at $3,860 before dipping to $3,600. A break above the $3,835–$3,840 resistance zone could trigger a move toward the cycle high at $4,107. Conversely, bearish RSI divergence and volume contraction warn of a pullback to $3,300 if the $3,800–$4,000 barrier holds. Analysts spot bullish fractal patterns, a MACD crossover and a bear trap that may pave the way for a decisive breakout. Traders should watch support at $3,490, momentum indicators and volume signals to time entries and exits. As of writing, Ethereum trades near $3,700, up 21% for the week.
Bullish
The news highlights Ethereum’s strong rally, key resistance tests and mixed technical signals. In the short term, bearish RSI divergence and volume contraction raise pullback risks near the $3,800–$4,000 zone, suggesting traders proceed with caution. However, breakout potential is bolstered by bullish fractal patterns, a MACD crossover and a bear trap reversal, pointing to a move toward the $4,107 cycle high. Over the longer term, analogies to past rallies and institutional interest support a bullish outlook, with targets extending to $8,000–$10,000 upon a decisive breakout. Therefore, the overall impact on Ethereum trading is bullish.