Ethereum (ETH) Price Analysis: Bearish Divergence Points Toward $3,900 Retest

Ethereum is currently trading around $4,400 and has started to lose momentum on lower timeframes. After an impressive August that took the price to a new all-time high of $4,953, the rally now appears to be running out of steam. At the same time, Bitcoin has dropped below $110,000, which adds pressure to the broader market and increases the likelihood of further correction. This raises the possibility that Ethereum may have already reached a cycle top, with consolidation and potential pullbacks now on the table. Still, it would be premature to call the end of the bull market. The way price develops over the coming days will be crucial in determining Ethereum’s next move and the overall market direction. With that in mind, let’s look at the charts to assess the key levels and patterns forming.

Key Takeaways:

• Ethereum faces repeated rejection at $4,800 with $4,350 as the key short-term support.
• Bearish RSI divergence signals weakness, with downside targets at $4,050 and $3,900.

Analyzing the Charts

Potential Double-bottom Pattern

Looking at the 4-hour chart for Ethereum, the price has faced rejection twice around the $4,800 level. This repeated failure to break higher suggests the possibility of a double top pattern forming or, at the very least, exhaustion in that zone. Each rejection has been followed by a notable drop, which shifts attention to the $4,350 support level in the immediate short term.

Bearish Divergence on RSI

The 4-hour RSI also highlights weakness, as a clear bearish divergence has formed. While Ethereum pushed to a new all-time high with higher lows on price, the RSI has been printing lower highs. This signals overbought conditions, and the ongoing correction reflects that imbalance. If the $4,350 support fails to hold under this selling pressure, the next key level to watch is around $4,050.

Similar Outlook on 1-Day Timeframe

Switching to the 1-Day timeframe, the bearish divergence becomes even more apparent, and the asset now looks stretched. The move to new all-time highs triggered a wave of profit-taking, which added selling pressure and dragged the price lower as traders looked to lock in gains. If these daily signals continue to play out, Ethereum could fall beyond $4,050 and retest the next major support just above $3,900 in the coming days.

Final Takeaway: What is Next for Ethereum (ETH)?

Ethereum is trading around $4,400 after losing momentum following its all-time high at $4,953. On the 4-hour chart, the repeated rejection at $4,800 and the bearish RSI divergence point to weakness, with $4,350 as the immediate support. A break below this level could open the way toward $4,050. On the daily timeframe, signals are even clearer, as bearish divergence and profit-taking suggest further downside. If selling pressure continues, Ethereum may retest the next major support near $3,900. For now, the market remains at a turning point, and how price reacts at these key levels will shape the short-term Ethereum price prediction and decide whether ETH consolidates or faces a deeper correction.