- Analyst Michaël van de Poppe correctly warned traders against buying the top near ETH’s $4,800 high
- He then identified the $4,100-$4,200 zone as the key dip-buying area, which held perfectly
- A dovish Powell speech then ignited the rally from this exact zone, validating the entire strategy
A dovish-perceived speech from Federal Reserve Chair Jerome Powell has ignited the crypto market, sending Ethereum roaring back towards its all-time high of $4891.70. ETH rally has perfectly validated the recent trading strategy laid out by analyst Michaël van de Poppe, who had called for a pullback before the next major leg up.
Just six days ago, as Ethereum pushed toward $4,800, van de Poppe issued a clear warning against buying into the frenzy. He pointed out that ETH had surged over 120% in under two months and looked “overextended,” suggesting investors should take partial profits rather than open new long positions.
According to his analysis, this level represents a zone where Ethereum could stabilize before making another upward move. In his view, this offers a more favorable entry than chasing the highs.
Risk Higher at the Top
Instead of chasing the highs, van de Poppe marked the $4,100 region as the strong support zone to watch for a rebound. As the market cooled off ahead of the Fed’s speech, the price dipped and briefly tested the $4,200 level yesterday, an area that saw a Massive Bounce from a “Strong Support Block,” just as he anticipated.
He had also noted that a deeper dip to the $3,600 zone would be the “best area” to accumulate, but the market found its footing at his primary level. This disciplined dip-buying strategy has now been rewarded as the market rips higher, with many now expecting an ETH Revenge Rally is Next.
Van de Poppe stressed the importance of securing gains to avoid holding through heavy corrections. Selling a portion, such as 30% after a rally, could cushion losses and provide liquidity to reaccumulate at lower levels.
The Powell Pump: The Catalyst for the Bounce
The trigger for this explosive bounce from the support zone was Jerome Powell’s Jackson Hole speech. While the details are still being digested, the market’s immediate reaction has been overwhelmingly bullish, interpreting his tone as a green light for a most probable September rate cut.
This has sent a wave of capital back into risk assets, confirming that the recent dip was a pre-catalyst consolidation rather than the start of a deeper bear trend. With bulls now firmly back in control, the next major test for Ethereum is the previous all-time high just below $4,900.
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