Ether (Eth) jumped to $ 4,200 on Binance early Saturday, the highest since December 2021, after a two-day rally powered by heavy trade and $ 207 million in short liquidations.
The move followed Friday’s breakout over $ 4,000 for the first time since December 2024, a technical milestone that withdrew in fresh purchase and set the stage for Saturday’s push higher.
Miles Deutscher said these forced repurchases helped speed up the rally. In a previous post, he described an “on-chain wealth effect”: As ETH’s price rises, both major holders and retail investors see their positions become profitable, causing them to redistribute capital to less tokens with higher risk in the persecution of greater gains. This dynamic, he said, can reinforce rallies beyond one’s self.
Deutscher also mapped out a three-step market rotation, which he expects to take months to unfold: an ETH-LED mini altcoin season, a rotation to Bitcoin that could lift BTC against $ 120,000- $ 140,000, while Altcoin’s delay, and finally a shift back to Eth and less tokens for a potential “Blowoff”, marking Cycle’s Peak.
Crypto analyst Michaël van de Poppe called Saturday’s push for $ 4,200 a “wild move” and warned that purchases at such elevated levels were more at risk. While seeing ETH creating up to a breakout against all-time highs, he argued that awarding capital for projects within the ETH Ecosystem may deliver better percentage returns if momentum continues. He also said earlier that continued ETH strength could set the stage for significant gains in Altcoins, potentially rewarding portfolios located for a wider market rotation.
Market Intelligence Platform Santiment noted that ETH’s increase over $ 4,000 on August 8 was the first since December 16, 2024 and came with a sharp rise in Bullish language from retailers. Mentions of terms such as “to buy” and “bullish” roughly doubled compared to “sales” and “bearish”. The company warned that overstatives can sometimes lead to short -term breaks, even under strong uptrends.
Technical analysis highlights
- According to Coindesk Research’s technical analysis model, between 8 August at. 07:00 UTC and August 9 at. 06:00 UTC, ETH rose from $ 3,914.59 to $ 4,160.29, a win of 6%trading between $ 3,885.03 and $ 4,194.53.
- The first breakout happened at. 13:00 UTC on August 8th and pushed prices over $ 4,000 at 646,459 ETH in volume, almost triple the 24-hour average of 218,847 ETH.
- Another increase at. 05:00 on August 9, the prices raised the session top of $ 4,194.53 on 714,461 ETH in volume, again more than tripled the daily average.
- In the last hour (9 August, 05: 19–06: 18 UTC)ETH moved from $ 4,157.33 to $ 4,194.53 before retiring to $ 4,158.50, with $ 42.52 in intraday swings.
- Buy briefly pushed prices over $ 4,190 before taking a profit and establishing support between $ 4,155 and $ 4,160, suggesting consolidation as larger players locked in gains near the psychological $ 4,200 level.
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