#ETH jumped to $4,200 on Binance early Saturday, its highest since Dec 2021, after a two-day rally fueled by heavy trading and $207 million in short liquidations.
move followed Friday’s breakout above $4k for the first time since Dec2024, a technical milestone that drew in fresh buying and set stage for Saturday’s push higher.
Miles Deutscher said these forced buybacks helped accelerate the rally. earlier post, he described an “on-chain wealth effect”: as ETH’s price rises, both large holders , retail investors see their positions turn profitable, prompting them to reallocate capital into smaller, higher-risk tokens in pursuit of bigger gains. This dynamic, he said, can amplify rallies beyond ETH itself.
Deutscher also mapped out a three-stage market rotation he expects could take months to unfold: an ETH-led mini altcoin season, a rotation into bitcoin that could lift BTC toward $120k–$140kwhile altcoins lag, and finally a shift back into ETH and smaller tokens for a potential “blowoff” rally marking the cycle’s peak.Crypto analyst Michaël van de Poppe called Saturday’s push to $4,200 a “wild move” and warned that buying at such elevated levels carried greater risk. While he sees ETH setting up for a breakout toward all-time highs, he argued that allocating capital to projects within the ETH ecosystem might deliver better percentage returns if momentum continues. He also said earlier that continued ETH strength could set the stage for substantial gains in altcoins, potentially rewarding portfolios positioned for a broader market rotation.Market intelligence platform Santiment noted that ETH’s climb above $4,000 on Aug.was the first since Dec.2024, and came with a sharp increase in bullish language from retail traders. Mentions of terms like “buying” and “bullish” roughly doubled compared with “selling” and “bearish.” The firm cautioned that overconfidence can sometimes lead to short-lived pauses even during strong uptrends.$ETH