Ethereum News

ETH Price Poised for Major Rally After Potential $3.9K Retest Amid Record ETF Inflows

by Crypto Hobby

Updated August 20, 2025

Ether (ETH) is navigating a critical trading week, with its price action currently caught between key liquidity zones.

Analysts suggest a potential retest of the $3,900 support level could precede a significant rally, potentially doubling its value and reaching new all-time highs.

Key Takeaways

Ether faces a liquidity battle between the $3,900 support and $4,400 resistance.
Record ETF inflows of 649,000 ETH highlight sustained institutional demand.
Long-term projections remain bullish, with dips toward $3,000 to $3,500 seen as setups for a rally toward $8,000.

Navigating Liquidity Zones

Ether's immediate price action is characterized by a tug-of-war between support and resistance levels.

On the downside, the $4,150 level is a critical support zone, reinforced by multiple liquidity lows.

Just below this lies a fair value gap around $4,000, which aligns with the 0.50–0.618 Fibonacci retracement range between $4,100 and $3,900.

This confluence of factors suggests an attractive area for swing traders to place bids, with significant resting bids stacked down to $3.9K.

To the upside, ETH faces immediate resistance near $4,400, an imbalance formed during recent price action that could act as a short-term magnet. A sustained bullish reaction above this level could propel ETH towards $4,583, a higher time-frame resistance. A confirmed break and stabilization above this point would strengthen the case for new all-time highs.

From a structural perspective, a deeper retest near $3,900 is viewed as a more constructive scenario for bulls.

This would help flush out early long positions and build liquidity for a stronger recovery towards $4,500 and subsequent new highs in the fourth quarter.

The current four-hour relative strength index (RSI) remains below 50, indicating room for further downside before ETH enters oversold territory, potentially setting up for a bullish breakout.

Institutional Demand and Long-Term Outlook

Despite short-term price fluctuations, Ether's broader outlook remains strongly bullish, bolstered by record institutional inflows and a favorable technical setup.

Last week, US-listed spot Ether ETFs saw net inflows of nearly 649,000 ETH, marking the largest weekly haul on record. This sustained institutional demand, even with a brief weekend pullback from highs near $4,740, underscores significant investor interest.

Market analysts are increasingly positive on Ether's positioning relative to Bitcoin. Senior ETF analyst Eric Balchunas noted that Ether ETFs are turning Bitcoin into the "second best" crypto asset in July, awarding the category "ETF of the Month" due to unprecedented investor interest.

Technically, traders are observing Ether's multi-year bullish pennant, a pattern that is nearing a breakout. This suggests that smart money has been accumulating on every dip, while weaker hands have been flushed out during prior consolidations. Long-term projections envision a potential pullback toward the $3,000–$3,500 range, which could serve as a launchpad for ETH to rally past $8,000, potentially marking the beginning of a new significant price chapter.