FEVER IN THE MARKET!
#ETH skyrockets to $4,200, its highest level since 2021, driven by liquidations and fervor "From #Altcoin ".
Is this the start of a monumental rally across the Ecosystem?
#Ethereum has shaken the market, reaching $4,200, a level not seen since December 2021. This meteoric two-day rise, surpassing $4,000 for the first time in months, is due to a combination of intense trading and over $207 million in short position liquidations, injecting fervent optimism throughout the community.
The breakout on Friday above $4,000 was a psychological and technical milestone that attracted new buying and laid the groundwork for strong momentum over the weekend.
Analyst Miles Deutscher explains that the ETH rally could be generating a "wealth effect in chain," where gains in large ETH holdings motivate investors to rotate capital into smaller, riskier altcoins in search of even greater returns.
Three Stages of Market Rotation: Deutscher outlines a roadmap for market rotation that could last for months: a mini "#Altseason " led by ETH, followed by a move toward Bitcoin that could take it to $120k-$140k while altcoins lag behind, and finally a return to ETH and smaller altcoins for an "explosive rally" that would mark the peak of the cycle.
Analyst Michaël van de Poppe describes the move to $4,200 as a "jump" and warns of the risks of buying at these levels. However, he believes that ETH's strength could lay the groundwork for substantial gains across the ecosystem.
Optimistic Sentiment at Highs: The firm Santiment reported a significant increase in bullish language among retail traders, with mentions of "buy" and "bullish" nearly doubling bearish terms. The firm warns that this overconfidence can cause temporary pauses, even in strong bullish trends.
