Bearish Divergence on Ethereum, Eyes $3,400 Pullback Unless $3,800 Breaks: Reports Van De Poppe

Ethereum climbed roughly $1,200 to a high of $3,850, but market analyst Michaël van de Poppe (@CryptoMichNL) says the rise showed a bearish divergence

The shift resulted in a tightening of prices as the momentum settled. Not long after it reached $3850, ETH put in a lower high, a traditional indication that the buyers may be slowing down.

$ETH makes a bearish divergence after a $1,200 run upwards.After that, a lower high is created.If this wants to make an upwards run, then I'd like to see it break through $3,800.If not, then probably we're seeing $ETH at $3,400 again. pic.twitter.com/SfqPzY4YgG

— Michaël van de Poppe (@CryptoMichNL) July 23, 2025

$3800 Is the Next Big Level to Sustain

Bulls need to reclaim and reassert Ethereum above $3,800. If the overall crypto sentiment remains risk-on, a squeeze could erase the divergence and lead the market back to the highs and beyond.

The Worst-Case Scenario: $3,400 retest

A failure to surpass $3,800 leaves a correction on the table. According to Van de Poppe, the probable point in case the sellers dominate is $3,400. It was former resistance that turned into support, and it may provide the rational level to buy the dip when one is looking to buy the next leg up.

What’s Ahead for Ethereum

The next definitive move of ETH, as analyzed by the analyst, is also associated with macro catalysts, and in this case, it is possible U.S. interest rate cuts.

The Federal Reserve might provide Ethereum with the needed tailwind that can send it upward to flip $3,800 and continue the uptrend towards the all-time high.

In the short term, everyone is looking forward to that retest of the $3,800 pivot; failure to surpass it, and the buying pressure can pick up again, whereas missing it, we could be getting the correction first before more upside.