Ethereum (ETH) has taken the crypto world by storm, soaring to $4,200 on Binance early Saturday, its highest level since December 2021. The rally, fueled by intense trading and $207 million in short liquidations, comes after ETH smashed through the $4,000 barrier on Friday, sparking excitement among investors.

The surge began with a breakout above $4,000 on Friday, a key technical milestone not seen since December 2024. This triggered a wave of buying that powered ETH to new heights by Saturday morning, catching the attention of traders and analysts alike.

Crypto expert Miles Deutscher explained that the rally was supercharged by forced buybacks from liquidations. He also highlighted an “on-chain wealth effect,” where rising ETH prices boost the confidence of both big players and everyday investors. As their portfolios grow, many are funneling profits into smaller, riskier altcoins, hoping for even bigger returns. This trend, Deutscher says, could spark a broader market rally.

He also laid out a three-phase prediction for the crypto market. First, ETH could lead a mini altcoin season. Next, bitcoin might take the spotlight, potentially climbing to $120,000–$140,000 while altcoins cool off. Finally, a return to ETH and smaller tokens could trigger a massive “blowoff” rally, marking the peak of this market cycle.

A "Wild Move" in Crypto

Crypto analyst Michaël van de Poppe called ETH’s leap to $4,200 a “wild move” but cautioned that jumping in at these highs could be risky. While he believes ETH is gearing up for a shot at all-time highs, he suggests that investing in projects within the Ethereum ecosystem might offer better returns if the momentum holds.

Van de Poppe also noted that if ETH keeps climbing, it could pave the way for major gains in altcoins, rewarding investors who position themselves for a wider market surge.

Data from Santiment, a market intelligence platform, showed that ETH’s rise above $4,000 on August 8 marked its first time at that level since December 16, 2024. Social media buzz reflected the excitement, with terms like “buying” and “bullish” doubling compared to “selling” or “bearish.” However, Santiment warned that such overwhelming optimism could lead to brief pauses, even in a strong uptrend.

What the Charts Say

According to CoinDesk Research’s technical analysis, ETH climbed 6% from $3,914.59 to $4,160.29 between 07:00 UTC on August 8 and 06:00 UTC on August 9. Prices fluctuated between $3,885.03 and $4,194.53 during this period.

The first big move came at 13:00 UTC on August 8, when ETH broke $4,000 with a massive 646,459 ETH in trading volume—nearly triple the 24-hour average of 218,847 ETH. A second surge at 05:00 UTC on August 9 pushed prices to a session high of $4,194.53, backed by 714,461 ETH in volume, again far above average.

In the final hour (05:19–06:18 UTC on August 9), ETH moved from $4,157.33 to $4,194.53 before settling at $4,158.50, with $42.52 in intraday swings. Buying briefly drove prices above $4,190, but profit-taking kicked in, establishing support between $4,155 and $4,160. This suggests the market is stabilizing as big players lock in gains near the psychologically significant $4,200 mark.