ETH Bears “Facing Defeat” as Price Reaches Highest Level Since December 2021

Miles Deutscher indicated that these forced buybacks contributed to accelerating the rally. He previously described an “on-chain wealth effect,” where rising ETH prices prompt both large holders and retail investors to see their positions become profitable, encouraging capital reallocation into smaller, higher-risk tokens for larger returns. He noted this dynamic can amplify rallies beyond ETH itself.

Deutscher also outlined a three-phase market rotation he expects to unfold over several months: an ETH-led mini altcoin season, a rotation into bitcoin potentially lifting BTC towards $120,000–$140,000 while altcoins lag, and ultimately a return to ETH and smaller tokens for a potential “blowoff” rally that marks the peak of the cycle.

Crypto analyst Michaël van de Poppe described Saturday’s surge to $4,200 as a “wild move,” cautioning that buying at such heights carries increased risk. While he anticipates ETH preparing for a breakout toward all-time highs, he argued that investing in projects within the ETH ecosystem might yield better percentage returns if momentum persists. He also noted that continued ETH strength could foster significant gains in altcoins, rewarding portfolios strategically positioned for broader market rotations.

Market intelligence platform Santiment observed that ETH’s rise above $4,000 on August 8 was the first since December 16, 2024, and coincided with a notable uptick in bullish sentiment from retail traders. Mentions of terms like “buying” and “bullish” approximately doubled compared to “selling” and “bearish.” The firm warned that overconfidence can sometimes prompt temporary pauses even in strong upward trends.

Technical Analysis Highlights

• CoinDesk Research’s technical analysis model indicated that from August 8 at 07:00 UTC to August 9 at 06:00 UTC, ETH increased 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 August 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 August 9 lifted prices to the session peak of $4,194.53 on 714,461 ETH in volume, again exceeding the daily average.
• In the final hour (August 9, 05:19–06:18 UTC), ETH climbed from $4,157.33 to $4,194.53 before retreating to $4,158.50, showing a $42.52 intraday range.
• Buying briefly pushed prices above $4,190 before profit-taking began, forming support between $4,155 and $4,160, indicating consolidation as large players secured profits near the psychological $4,200 level.

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