Key TakeawaysETH rallied from $4,000 to $4,200 in under 24 hours — its highest level since Dec. 2021.Breakout driven by $207M in short liquidations and surging spot volumes.Analysts expect ETH-led altcoin season before a BTC run toward $120K–$140K, then a final ETH/small-cap rally.Retail bullish sentiment has doubled, but Santiment warns FOMO may slow momentum.Technicals show triple average trading volumes during both surges.Ethereum (ETH) staged a two-day rally that pushed its price from $4,000 to $4,200 for the first time in more than three years, as market momentum shifted firmly toward altcoins and away from Bitcoin dominance.On Friday, Aug. 8, ETH broke above the $4,000 psychological level for the first time since December 2024, buoyed by renewed whale accumulation and increased institutional interest. By Saturday, Aug. 9, the world’s second-largest cryptocurrency had reached $4,200 on Binance — a level not seen since December 2021 — marking a 7% daily gain.Fuel Behind the BreakoutData from Coinglass showed $207 million in short liquidations during the move, forcing traders to buy back positions and accelerating the rally. CoinDesk Research highlighted two key surges:Aug. 8, 13:00 UTC: ETH broke $4,000 on 646,459 ETH volume, nearly triple the daily average.Aug. 9, 05:00 UTC: ETH peaked at $4,194.53 on 714,461 ETH volume, again triple typical turnover.Spot demand was bolstered by high-profile purchases, including a 10,400 ETH ($40.5M) OTC buy and whale activity on Aave that involved swapping leveraged WBTC for additional ETH.From ETH to Altcoins — and Back AgainAnalyst Miles Deutscher described the breakout as part of an “on-chain wealth effect”, where ETH gains drive capital rotation into smaller, higher-risk tokens in search of outsized returns. He outlined a potential three-stage market cycle:ETH-led mini altcoin season.Rotation into BTC, lifting it toward $120K–$140K while altcoins lag.Final blowoff rally led by ETH and small caps.Crypto strategist Michaël van de Poppe called the $4,200 push a “wild move,” cautioning against chasing at elevated levels. He argued that tokens within the ETH ecosystem could outperform percentage-wise if the rally extends.Market Sentiment and Bitcoin DominanceSantiment reported that the Aug. 8 breakout doubled bullish retail language on social media — “buying” and “bullish” mentions surged versus “selling” and “bearish” — but warned such sentiment spikes can precede cooling periods.Meanwhile, Bitcoin’s market dominance dropped below 60.7%, nearing a key technical support level. Rekt Capital said while BTC dominance could briefly rebound toward 70%, an eventual breakdown toward the low 40% or high 30% range is “inevitable” as altcoins continue to outperform.Technical OutlookETH is now less than $900 from its all-time high, with immediate support forming between $4,155–$4,160. Analysts are watching for consolidation before another leg higher, with upside targets between $4,500–$4,800 if momentum holds.Ethereum’s rapid two-day climb has reignited altseason speculation, shifted market dominance away from Bitcoin, and set the stage for a broader rotation play. While analysts see room for further gains, the combination of elevated retail sentiment and triple-average trading volumes suggests near-term volatility as profit-taking sets in.
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