Ether (ETH) jumped to $4,200 on Binance early Saturday, its highest since December 2021, after a two-day rally fueled by heavy trading and $207 million in short liquidations.

The move followed Friday’s breakout above $4,000 for the first time since December 2024, a technical milestone that drew in fresh buying and set the stage for Saturday’s push higher.

Miles Deutscher said these forced buybacks helped accelerate the rally. In an earlier post, he described an “on-chain wealth effect”: as ETH’s price rises, both large holders and 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 $120,000–$140,000 while 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. 8 was the first since Dec. 16, 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.

Technical Analysis Highlights

• According to CoinDesk Research’s technical analysis model, between Aug. 8 at 07:00 UTC and Aug. 9 at 06:00 UTC, ETH rose from $3,914.59 to $4,160.29, a 6% gain, trading between $3,885.03 and $4,194.53.
• The first breakout occurred at 13:00 UTC on Aug. 8, pushing prices above $4,000 on 646,459 ETH in volume, nearly triple the 24-hour average of 218,847 ETH.
• A second surge at 05:00 UTC on Aug. 9 lifted prices to the session peak of $4,194.53 on 714,461 ETH in volume, again more than triple the daily average.
• In the final hour (Aug. 9, 05:19–06:18 UTC), ETH moved from $4,157.33 to $4,194.53 before retreating to $4,158.50, with $42.52 in intraday swings.
• Buying briefly pushed prices above $4,190 before profit-taking set in, 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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