Ethereum Price Forecast: Why ETH Could Rally to $3900

Highlights:

• Ethereum is trading at the $3321.5 resistance level
• A clear break off this resistance could send it to $3902.8 
• Analysts predict Ethereum could outperform Bitcoin in 2026 

Ethereum (ETH) is little changed today, mirroring the broader market trend. At the time of writing, Ethereum was trading at $3,303.15, down by a negligible 0.7% on the day. However, even as the price remains relatively unchanged, Ethereum trading volumes have dropped considerably intraday. 

Ethereum trading volumes currently stand at $25.72 billion, down by 17.61% in the day. This indicates that the average Ethereum holder is not keen on selling their holdings. It is reflected in the prices of Bitcoin and most top cryptocurrencies. In the short term, Ethereum could continue consolidating, but the long-term trajectory is likely up. 

Issues Around the Clarity Act Dampen Ethereum Momentum

The short-term consolidation is likely to be driven by the news around the Clarity bill in the US. The recent price rally for Ethereum and other cryptocurrencies was driven by expectations that the much-awaited Clarity Act would pass.

However, cryptocurrency players have withdrawn support for the bill. One of the most vocal ones is Brian Armstrong of Coinbase. Armstrong wrote on X that he could no longer support the bill because it was disfranchising the cryptocurrency industry in favor of legacy finance.

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

Among his strongest points is that it bans equity tokenization and makes it impossible for cryptocurrency platforms to pay yield to stablecoin holders. The withdrawal of support by such players has led to the bill being shelved, and any vote is not expected until at least February. This has seen the momentum built up by the bill disappear. For Ethereum, this ended the momentum that grew as investors expected the bill to pass soon. Many believed the bill would bring clear rules and attract large institutional capital.

Ethereum Holds Above Resistance Despite Clarity Act Setback

However, unlike in the past when such a regulatory setback would have sent Ethereum crashing, this time around, the price is stable. This can be attributed to the growing adoption of Ethereum, the issues around the Clarity Act notwithstanding. For context on the growth around Ethereum, the number of Ethereum transactions has hit a record high.

According to Glassnode, the Ethereum network has seen a sharp increase in new user activity and an increase in the number of new users actively using the network over the past 30 days. pic.twitter.com/SqRY0448S7

— Dandara Denis 💹🧲 (@DenisDandara) January 16, 2026

Data shows that this growth is being driven by Ethereum adoption in the stablecoin market and other Decentralized applications. Wallet activity on the Ethereum network is also on the rise. This shows that there is more user interaction with the Ethereum ecosystem. Professional analysts are also validating the growing adoption of Ethereum for various use cases. 

Analysts Paint A Bullish Picture for Ethereum Price

Recently, Standard Chartered Bank analysts noted that Ethereum could outperform Bitcoin in 2026. They pointed to surging institutional adoption and better regulations around cryptocurrencies as the key factor that could drive growth. Such predictions are likely to drive both retail and institutional confidence in Ethereum for the remainder of 2026. In the short to medium term, it could trigger an Ethereum rally to $4000 or higher.

“2026 will be the year of Ethereum" – Standard Chartered

The bank expects ETH to outperform Bitcoin as stablecoins, RWAs and DeFi scale, even as near-term price targets are trimmed.

Standard Chartered ETH outlook:
• End-2026: $7,500 (cut from $12,000)
• End-2027: $15,000… pic.twitter.com/Akd8EqyePz

— Naga Avan-Nomayo (@JeSuisNaga) January 12, 2026

Technical Analysis – Ethereum Trading At Critical Resistance

Ethereum is trading at the $ 3,321.5 resistance level. If bulls take control and there is a clear break above the $3321.5 resistance, a short-term rally to $3902.8 is expected. On the other hand, if Ethereum fails at the $3321.5 resistance, a correction to $2820.7 could follow.

Of these two scenarios, a rally to $3902.8 is more likely. That’s because, despite the setup around the clarity regulatory bill, the price has held above a critical resistance level. It shows that the underlying demand for Ethereum remains strong. Such demand could even see Ethereum retest $4000 in the near term.