Ethereum (ETH) surged 7% to $4,200 — its highest price since December 2021 — driven by two days of bullish momentum and $207 million in short liquidations. Breaking above the key $4,000 level on Friday triggered fresh buying, pushing prices higher on Saturday.
Analyst Miles Deutscher explained that rising ETH prices often lead investors to shift profits into smaller, riskier tokens (“on-chain wealth effect”), which can further fuel ETH’s rally. He predicted a three-phase cycle: a short altcoin season led by ETH, a shift toward Bitcoin (possibly reaching $120K–$140K), and then a return to ETH and small-cap tokens marking the cycle’s peak.
Analyst Michaël van de Poppe called the move to $4,200 a “wild” surge but warned of high risk at this level. He expects ETH to approach its all-time high but advised investing in ETH ecosystem projects for better returns. ETH’s strength, he noted, could generate large gains in altcoins.
Market intelligence firm Santiment observed that ETH crossing $4,000 for the first time since December 2024 coincided with increased use of terms like “buy” and “bullish” among retail traders — a sign of strong sentiment. However, they cautioned that overconfidence can sometimes cause short-term pauses.
Technically, ETH rose from $3,914.59 on August 8 to $4,160.29 on August 9, with trading volume tripling. The rally came from two major breakouts, peaking above $4,190 before pulling back slightly due to profit-taking. Current market signs point to consolidation, and analysts urge caution due to potential volatility.$ETH
