📈 ETH Breaks Multi-Year Highs

  • Ethereum $ETH soared 7% to $4,200 on Binance — its highest since December 2021.

  • The rally came just a day after ETH smashed through the $4,000 resistance for the first time since Dec. 2024.

  • A massive $207M in short liquidations helped fuel the surge.

ETH
ETH
3,019.29
+2.70%

🔍 Why This Matters

  • Forced Buybacks: Analyst Miles Deutscher says liquidated shorts forced traders to buy back $ETH , accelerating the rally.

  • On-Chain Wealth Effect: As ETH rises, investors often shift profits into smaller, high-risk altcoins — potentially kicking off a mini altcoin season.

  • Three-Stage Rotation Plan: Deutscher predicts:

    1. ETH-led mini altcoin rally 📊

    2. Rotation into BTC (possible run to $120K–$140K) 💰

    3. Return to ETH & small caps for a potential blow-off top 🚀

⚠ Expert Warnings

  • MichaĂ«l van de Poppe calls $4,200 a “wild move,” warning that buying at these highs carries risk.

  • He suggests looking at $ETH ecosystem projects for potentially better percentage gains.

📊 Market Sentiment

  • Santiment Data: ETH above $4K has doubled mentions of “buying” & “bullish” vs. “selling” & “bearish.”

  • However, too much retail FOMO can slow momentum, even in a bull trend.

📌 Technical Highlights

  • Aug 8–9: ETH climbed from $3,914 to $4,160 (+6%).

  • Breakout #1: Aug 8, 13:00 UTC — ETH > $4K on 646K ETH volume (3× average).

  • Breakout #2: Aug 9, 05:00 UTC — peak at $4,194 on 714K ETH volume (3× average).

💬 Do you think ETH will spark a full-blown altcoin season, or will this rally cool off?


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