Price fluctuations suggest $4,155-$4,160 as a potential short-term support level.
Ethereum (ETH) $4,209 has captured attention with its accelerated rise over the past two trading days. On Friday, August 8, Ethereum surpassed the significant resistance level of $4,000 for the first time since December 2024. This surge, accompanied by increased trading volume, continued as the crypto reached $4,200 on Binance on the morning of Saturday, August 9. At the time of this report, Ethereum traded around $4,165, marking an approximate 6.57% increase over the past 24 hours.
ContentsTechnical Developments and Trading VolumesAnalyst Views and Investor BehaviorPrice Movements and Consolidation Trend Technical Developments and Trading Volumes
Market analysts attribute the latest Ethereum rally to technical breakouts and shifts in investor positions. Miles Deutscher pointed out that CoinGlass data showed approximately $207 million in short positions were liquidated over the last 24 hours, fueling the upward momentum. He also noted that the “on-chain wealth effect” within the Ethereum ecosystem has benefited both large and small investors, which might drive interest in riskier tokens.
Deutscher predicts a three-phase market rotation. Initially, he expects a move in altcoins led by Ethereum, followed by a shift to Bitcoin $0.000016, with targets set between $120,000 and $140,000 for BTC. In the final phase, a return to Ethereum and smaller tokens could occur.
Analyst Views and Investor Behavior
Cryptocurrency analyst Michaël van de Poppe described Ethereum’s climb to $4,200 as a “crazy move” and cautioned that buying at these levels could be risky. His assessment suggested a potential rise to record levels while focusing on Ethereum projects could offer higher returns.
Van de Poppe also highlighted that Ethereum’s strength could significantly boost altcoins, advising portfolios to be prepared for market shifts. On another note, the on-chain analysis platform Santiment linked Ethereum’s rise above $4,000 to an increase in optimistic investor sentiment.
“The use of terms like ‘buy’ and ‘positive’ by individual investors doubled compared to ‘sell’ and ‘negative’ terms,” it assessed. “However, overconfidence might lead to short pauses in upward trends.”
Price Movements and Consolidation Trend
According to CoinDesk Research’s technical analysis model, between August 8, GMT 07:00, and August 9, GMT 06:00, Ethereum surged by approximately 6%, rising from $3,914.59 to $4,160.29. During this period, prices traded within the range of $3,885.03 to $4,194.53. Notably, at 1:00 PM on August 8, prices exceeded $4,000, propelled by 646,459 ETH trading volume, nearly triple the 24-hour average.
The second wave of increases at 5:00 AM on August 9 saw prices reaching $4,194.53. The volume, at 714,461 ETH, again exceeded the daily average significantly. In the final hour of the day, prices fluctuated between $4,157.33 and $4,194.53, experiencing $42 instant price swings.
Following the price rally, profit-taking began, stabilizing the price just below the psychologically significant $4,200 level. Analysts believe the $4,155-$4,160 range could serve as a short-term support level.
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