Ethereum Price Prediction: ETH Charts Signal Explosive Rally to New Highs

Ethereum (ETH) stands at a pivotal moment. Price charts suggest a potential retest of the $3,900 level. Following this, an explosive rally to new highs could emerge. This forecast excites investors across the cryptocurrency market. Understanding current market dynamics is crucial for any Ethereum price prediction.

Decoding Ethereum Price Prediction: The Current Landscape

Ether (ETH) recently achieved its highest weekly candle close in over four years. However, its price action now navigates critical liquidity zones. These zones drive significant fluctuations, sometimes exceeding 11%. Currently, ETH faces a liquidity battle. It is caught between $3,900 support and $4,400 resistance. This period is crucial for its short-term direction.

On the downside, ETH touched a Monday low at $4,224. Immediate focus shifts to the $4,150 level. This level serves as a strong support zone. Multiple liquidity lows reinforce it. Beneath this, a fair value gap exists around $4,000. This area aligns with the 0.50–0.618 Fibonacci retracement range. Specifically, this range spans between $4,100 and $3,900. Many swing traders view this confluence as an attractive area for bids. Kiyotaka, a trading platform, highlights this zone. It describes it as a “giant cluster of resting bids stacked all the way down to $3.9K.” Therefore, this range is critical. It could trigger liquidity-driven stop hunts and potential reversals. Investors should monitor these levels closely.

[img]Ether buy bids under $4,000. Source: Kiyotaka/X[/img]

ETH Price Rally Potential: Targeting New Peaks

Conversely, Ether encounters an immediate liquidity cluster near $4,400. This imbalance formed during Monday’s lows. It may act as a near-term magnet for the price. A sustained bullish reaction here could propel ETH towards $4,583. This level represents a higher time-frame resistance. A confirmed break above $4,583, followed by stabilization, would strengthen the case for a new all-time high. This would extend the coin’s multi-week bullish momentum. Consequently, market participants are watching for this breakout.

[img]Ether four-hour chart. Source: Crypto News Insights/TradingView[/img]

A deeper retest near $3,900 might actually be more constructive for bulls. It would flush out early long positions. This action would fuel liquidity for a stronger recovery towards $4,500. Ultimately, it could lead to new highs in Q4. Furthermore, the four-hour relative strength index (RSI) remains below 50. This suggests room for further downside. ETH could enter oversold territory. This scenario often precedes a bullish breakout. Traders are closely watching these indicators. They seek confirmation of the next major move for an ETH price rally.

Unprecedented Ether ETF Inflows Fueling Demand

Despite short-term price fluctuations, the broader outlook for Ether remains robustly bullish. Record institutional inflows strongly support this view. Last week, US-listed spot Ether ETFs saw nearly 649,000 ETH in net inflows. This marks the largest weekly haul on record. While ETH briefly touched $4,740 before a weekend pullback, the consistent inflow momentum underscores deep institutional demand. These significant investments highlight growing confidence in Ethereum’s long-term value. Such substantial Ether ETF inflows demonstrate increasing market maturity.

[img]US spot ETH ETFs net flows. Source: Glassnode/X[/img]

Market analysts increasingly favor Ether’s position relative to Bitcoin. Eric Balchunas, a senior ETF analyst at Bloomberg, stated that Ether ETFs are making Bitcoin the “second best” crypto asset. He even awarded the category “ETF of the Month” in July. This unprecedented investor interest reflects a significant shift. It demonstrates the increasing acceptance of Ethereum as a legitimate investment vehicle. Therefore, the institutional embrace is a strong bullish signal.

Long-Term Ethereum Technical Analysis and Bullish Outlook

On the technical front, traders observe Ether’s multi-year bullish pennant. Many call this a “sleeper setup” now nearing breakout territory. Prominent trader Merlijn notes consistent smart money accumulation during every dip. Weak hands were effectively flushed out during prior consolidations. This suggests a strong foundation for future growth. Consequently, the long-term charts present a compelling picture. This Ethereum technical analysis provides key insights for strategic investors.

[img]Ether one-month analysis by Merlijn. Source: X[/img]

ETH’s long-term projection envisions a strategic pullback. This could target the $3,000–$3,500 range. After this, ETH is poised to embark on a powerful rally past $8,000. This milestone could mark a new chapter in Ether’s price history. It signifies significant upside potential for investors. The overall sentiment points to a strong ETH bullish outlook. Investors are monitoring key levels closely. The confluence of technical patterns and institutional support paints a promising picture. Therefore, market participants anticipate substantial gains in the coming months. This comprehensive analysis provides crucial insights for those tracking Ethereum’s trajectory.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.