Ethereum’s Remarkable Surge

Ethereum (ETH) reached $4,200 on Binance over the weekend, achieving its highest price since December 2021 following a surge fueled by high trading volume and liquidations exceeding $207 million. This comes after ETH’s price broke the $4,000 barrier the previous day, a significant point of interest for traders.

What You Should Know:

• ETH advanced by 7% after overcoming the $4,000 resistance.
• The trading environment was buoyed by considerable short liquidations.
• Analysts highlighted that the rise in ETH could stimulate altcoin investments, although caution was advised regarding retail investor behavior, which may affect momentum.

Ether’s impressive price jump came after it cleared the $4,000 mark on the previous Friday, marking a pivotal moment in the market and attracting new buyers that contributed to Saturday’s rally.

Ethereum breakout image

Analyst Miles Deutscher opined that the buybacks caused by forced liquidations were crucial in facilitating this upward movement. An observed ‘on-chain wealth effect’ suggests that as ETH rises, both major investors and retail traders see their investments become profitable, prompting reinvestment in smaller, more volatile assets in hope of achieving even greater returns.

He also detailed a forecast consisting of three phases expected to develop over the upcoming months:

1. A brief altcoin season led by Ethereum,
2. A shift to Bitcoin that might push BTC to $120,000–$140,000, while altcoins might lag,
3. Lastly, returning interest in Ethereum and smaller altcoins that could signal a peak rally.

Market Insight
Crypto analyst Michaël van de Poppe described the push to $4,200 as a ‘wild move’ and cautioned about the risks of buying at elevated prices. He indicated that investing in projects within the Ethereum ecosystem may yield better returns if the current momentum continues.

In a note from Santiment, it was observed that ETH’s rise past $4,000 marked the first time since December 2024, accompanied by an uptick in bullish market discourse.

Technical Highlights

• CoinDesk’s technical model indicates that from August 8 at 07:00 UTC to August 9 at 06:00 UTC, ETH progressed from $3,914.59 to $4,160.29, representing a 6% increase.
• A notable breakout occurred on August 8 at 13:00 UTC when ETH exceeded the $4,000 mark with a trading volume of nearly three times the average.
• The session peak reached $4,194.53 on August 9 at 05:00 UTC.

Further buying pushed prices past $4,190 temporarily before profits were set, indicating a support level between $4,155 and $4,160.