Ethereum Price: Massive 100% Rally Predicted After $3,900 Bottom

Recent market movements have captivated investors. The Ethereum price has demonstrated remarkable resilience. Analysts now suggest a significant turnaround. A rare trading pattern points to substantial gains. This could potentially deliver a 100% ETH rally in the coming years. This detailed report explores the technical indicators and market sentiment behind these bold predictions.

Ethereum Price Finds Solid Ground at $3,900

Ethereum (ETH) recently established a crucial local bottom. This occurred around the $3,900 mark. Many experts view this level as a strong floor. It signals a potential end to recent downward pressures. Historically, such bottoms often precede strong upward trends. The market has watched closely for these indicators. This latest move provides a solid foundation for future growth. Furthermore, it reinforces a bullish narrative for the asset. Investors now seek confirmation of this trend reversal.

Several factors support this outlook. Buyers actively accumulated Ether between $4,800 and $4,200. A subsequent swift drop pushed the price below $4,000. Market analysts interpret this as a deliberate liquidity sweep. This action, often called a stop-hunt, clears external liquidity. Specifically, it targeted levels around $4,180. This strategic move aligns with previous market behaviors. Therefore, it strengthens the argument for a sustained recovery.

Unpacking the Power of 3 Pattern

A unique trading model, the Power of 3 pattern, has reappeared. Traders also know it as the Accumulation-Manipulation-Distribution setup. This pattern previously propelled ETH to $4,900 from $2,000. That impressive surge occurred between May and June. Its return signals significant potential for another breakout. The current structure mirrors past successful runs. Consequently, market participants are paying close attention.

The Power of 3 model unfolds in distinct phases:

• Accumulation: Smart money quietly buys assets, building positions.
• Manipulation: The price briefly drops, triggering stop-losses and creating fear. This allows institutions to acquire more at lower prices.
• Distribution: The price then rises significantly, allowing early accumulators to sell for profit.

The recent retracement below $4,000 aligned with a daily fair value gap (FVG). This event reinforced the bullish narrative. It did not undermine it. This move potentially repeats the successful Q2 setup. Momentum indicators also support this positive outlook. Both the 25-day and 50-day simple moving averages currently act as near-term resistance. A decisive daily close above $4,500 remains the next critical step. Securing this level would provide Ether with a robust base for its next advance. Analysts expect an 80–100% breakout as Q4 unfolds. This echoes the magnitude of gains seen earlier this year. The recent low below $3,900 looks increasingly like a floor price. Thus, Ether may prepare to test new highs soon.

Forecasting the Next ETH Rally

Expectations for a substantial ETH rally are building. Data points to a potential 80% to 100% gain. This could materialize by mid-2026. This forecast stems from the resurgence of the Power of 3 pattern. Such a significant move would place Ether well above its previous all-time highs. Investors are eagerly anticipating this potential growth. The current market conditions appear ripe for such an expansion.

The derivatives market offers further insights. Ether’s open interest (OI) and futures cumulative volume delta (CVD) have risen only marginally. This occurred while the price gained roughly 15% in a week. This suggests the advance is not yet leverage-driven. It reduces the risk of forced-long liquidations if momentum stalls. It also implies room for OI expansion. This could fuel a secondary leg if spot demand persists. Conversely, a significant drop in spot CVD during the rise indicated net aggressive sellers. This occurred on spot into strength. This classic bearish divergence can reflect absorption by passive bids. It may also show distribution from larger holders. Such patterns often precede whipsaw volatility if support is tested.

Diving into ETH Technical Analysis

Thorough ETH technical analysis reveals key support and resistance levels. The $4,500 mark represents a significant hurdle. A daily close above this level is crucial. It would confirm bullish momentum. This would provide a solid base for further price appreciation. Conversely, the $4,100 to $4,250 range serves as a critical area of interest. Internal liquidity is densely clustered here. Volume inefficiencies are also evident. The price previously moved sharply through this zone. It did not achieve a balanced interaction between buyers and sellers. Therefore, if bullish momentum fails to sustain a push above $4,500, this zone could act as a key retracement target or support area for price re-entry.

The retracement below $4,000, aligning with a daily Fair Value Gap (FVG), further strengthens the bullish narrative. An FVG occurs when there is an imbalance between buying and selling pressure. When price revisits and fills this gap, it often signals a healthy correction before continuing the trend. This recent FVG fill suggests that the market has ‘reset’ itself, absorbing selling pressure and preparing for the next leg up. This technical confirmation provides confidence to traders. It indicates the bottom may indeed be in for now.

Understanding Crypto Market Analysis and Derivatives

A comprehensive crypto market analysis must consider both spot and derivatives markets. The divergence between spot CVD and price is noteworthy. If absorption continues, and the price holds above reclaim levels between $4,200 to $4,400, sidelined leveraged traders could re-enter. This would extend the trend with controlled volatility. However, if bullish absorption fades, the divergence raises pullback risk. It increases the probability of sharp mean-reversion dips. This occurs as liquidity pockets get swept before the trend continues upward. This interplay between spot and derivatives provides a nuanced view of market sentiment.

Monitoring open interest (OI) is vital. Rising OI alongside price increases can indicate growing speculative interest. However, if OI growth lags behind price, it suggests the rally relies less on leveraged positions. This makes it potentially more sustainable. The current scenario shows marginal OI growth. This points to a healthier, less speculative foundation for the recent price gains. This reduces the immediate risk of cascading liquidations. Such events often amplify downturns. Therefore, the market’s current structure appears more robust.

Key Levels and Future Outlook

Ethereum’s path forward involves navigating several key price levels. A decisive break above $4,500 remains paramount. This will unlock the path toward the predicted 80-100% rally. The $4,100-$4,250 zone will serve as crucial support during any potential pullbacks. Maintaining these levels is essential for sustained upward momentum. The overall sentiment remains cautiously optimistic. Institutional interest, particularly with discussions around Ethereum ETFs, continues to grow. This could provide additional catalysts for future price appreciation. Investors should remain vigilant, however, as market volatility is always a factor in the cryptocurrency space.