ETH Surges to $4,200, Its Highest Price Since December 2021
Ether (ETH) Performance Summary
- ETH reached $4,200 on Binance, the highest level since December 2021.
- The price surge followed a breakout above $4,000 on August 8, attributed to heavy trading and $207 million in short liquidations.
- Analyst Miles Deutscher noted that forced buybacks contributed to the rally and described an "on-chain wealth effect," where rising ETH prices lead investors to reinvest in riskier assets.
- Deutscher outlined a market rotation: starting with ETH, moving to Bitcoin with potential targets of $120,000–$140,000, and then back to ETH and altcoins for a peak rally.
- Crypto analyst Michaël van de Poppe warned about increased risks at elevated prices but highlighted potential gains from investing in projects within the ETH ecosystem.
- Market sentiment shifted positively, with bullish language among retail traders doubling compared to bearish terms, although overconfidence may lead to corrections.
Technical Analysis Highlights
- From August 8 to August 9, ETH rose from $3,914.59 to $4,160.29, marking a 6% gain.
- First breakout occurred on August 8 at 13:00 UTC with volume reaching 646,459 ETH, nearly triple the average.
- A second surge on August 9 at 05:00 UTC peaked at $4,194.53 with a volume of 714,461 ETH, also more than triple the average.
- During the final hour of August 9, ETH fluctuated between $4,157.33 and $4,194.53 before stabilizing around $4,158.50.
- Support established between $4,155 and $4,160 suggests consolidation as larger players take profits near the $4,200 mark.