Ethereum Continues Climb After Crushing $4k. Is Reversal Near?

Ethereum continued its climb on Saturday, breaking above yet another key resistance. Accumulation nears new levels as bullish traders remain optimistic.

The altcoin broke above $4k for the first time since December 2024. The milestone earned applause and cheers from the community, with many projecting further increases.

Data from Santiment reveals that most ETH holders are currently bullish about the next price action of ETH. The platform posted the image below, which noted the reactions trailing the latest event. The altcoin is trading above the mark for the first time in eight months.

Reports indicate no signs of exhaustion as ETH sees massive positive commentary following its return to the price mark. While there is bearish sentiment, it’s mild and does stipulate an impending reversal.

However, the Santiment also pointed to the danger of bullish rhetoric. It warned that the retail crowd may cause FOMO and lead to a temporary halt to the rally. 

Are There Signs of FOMO?

Ethereum is trending on X. Investors are lauding the coin’s new high. It opened Saturday at $4,010 and surged, breaking above $4,200. The apex altcoin peaked at $4,247 and is up by over 5% since the start of the day.

Celebrating the surge, Rekt Capital stated that ETH “has turned a long-standing downtrend dating back to late 2021 into new support.” 

Others agreed with his statement, with one X user saying that the shift in the ETH trend line is promising for bullish momentum. Another noted the run that followed the coin after it broke above the mark in 2021. Crypto_gerl said that the altcoin gained over 80% in three months.

While many are rejoicing over the milestone, the Ethereum Futures market is bleeding. Traders recorded the most losses on Ethereum. They lost over $236 million in 24 hours, with almost 70% of the liquidation happening in the last 12 hours.

Nonetheless, short positions made up over 88% of the total losses. Additionally, while the focus remains on ETH, derivatives posted REKT capital exceeding $400 million in the last 24 hours. 

One trader lost over $15 million after ETH broke above $4,200. He was fully liquidated after several attempts at keeping his position open.

Ethereum Proponent Aims Higher

On August 2, Lookonchain announced that Arthur Hayes sold 2,373 ETH and other assets. In a move that meant he took profit and anticipated further declines.

However, Hayes is now moving to repurchase the coin following the rise. It is worth noting that the founder has been very vocal about his stance on Ethereum. He predicted that the altcoin would break above $10k before year-end. The latest move may reinforce faith in this forecast.

While proponents remain optimistic, the coin shows slight signs of halting its uptrend. It is noteworthy that the relative strength index is above 70, indicating that the asset is overbought. ETH is trading slightly below its high, which may be the first sign of a trend reversal.

The 1-day chart indicates that the altcoin is due for corrections. Aside from RSI, the Bollinger bands reveal that the altcoin broke above them hours ago. 

The Fibonacci retracement levels point to an impending drop below $4k. It places the next price target at $3,800. 

Santiment’s previous assertion of how growing crowd sentiment may affect the coin’s next price action may hold. A sweep through shows investors becoming very optimistic, with some predicting a breakout above $8k this month. This may be the first sign of FOMO. 

The post Ethereum Continues Climb After Crushing $4k. Is Reversal Near? appeared first on Cointab.