Ethereum Tests $4.2K Before A Small Pullback, Analyst Warns On Buying At Highs

Ethereum ($ETH) made a sharp move upward, briefly sweeping the $4,200 level before retreating to around $4,100.

Given the strong bullish momentum, some analysts caution that entering at such high price levels carries increased risks.

Wild move of $ETH.
It has swept the high and it is a little too risky to be buying $ETH at these highs.
It’s setting up for a big breakout towards ATHs, but I think it’s wiser to allocate funds within the $ETH ecosystem as it should yield a higher return. pic.twitter.com/SlydTcukqT
— Michaël van de Poppe (@CryptoMichNL) August 9, 2025

Michaell van de Poppe, a popular crypto trader and analyst, has explained that since Ethereum seems to be forming a breakout and going on to new all-time highs, the level where it currently sits is not that favorable for an entry point.

He added that a quick-hit investment in Ethereum in the broader Ethereum ecosystem, such as Layer-2 products or ETH-based DeFi protocols, could yield superior returns in the short run.

Ethereum’s Technicals Point to More Bullish Momentum

On the daily chart, Ethereum’s Relative Strength Index (RSI) sits at 72, indicating buyer-dominant conditions. This may be an indication of a well-established bullish momentum, but it will also reflect that there might be a short-term pullback before further bullish gain.

To improve the bullishness, the MACD has verified a crossover of the 186 and 196 levels a buy signal that can be considered as a momentum switch to the buyers.

That goes together with the recent rally in ETH that has gone through resistance, but traders will be looking out to see whether the asset sustains itself above crucial support ranges.

Eyeing All-Time Highs

Closing above the $4,200 resistance on a weekly time frame places the asset close to breaching its all-time highs that were last observed at the height of the bull market about a year ago.

The traders are, however, divided in terms of whether the ETH price will make an immediate jump higher or stagnat, followed by yet another leg up.

In case the bullish structure proves itself and the buying pressure remains, then a charge to an unknown territory may occur.

With over five years of experience in crypto, blockchain, and tech content, Ishtiyaq makes complex topics easy to understand. He simplifies blockchain and digital currency concepts for a wide audience, ensuring that beginners and experts alike can grasp key ideas. His clear and engaging writing helps readers stay informed about the latest trends, developments, and innovations in the crypto space. Whether explaining blockchain technology, digital assets, or DeFi, Ishtiyaq breaks down complicated ideas into simple, digestible content. His goal is to help people navigate the fast-changing world of cryptocurrency with confidence, clarity, and a deeper understanding.

Source: https://blockchainreporter.net/ethereum-tests-4-2k-before-pullback-analyst-warn-on-buying-at-highs/