Ethereum Surpasses $4,700: Van de Poppe Warns 'Don't Be Greedy for Too Long'

Ethereum is nearing its all-time high following a strong bullish rally, but renowned trader Michaël van de Poppe is advising investors to exercise caution. In a recent market update, he pointed out reasons why ETH could be overextended in the short term and why taking partial profits might be a smarter move. The Bullish Trend of Ethereum and the Risks of Mispricing Ethereum has increased by over 120% in less than two months, from around 1,500 dollars to over 4,700 dollars. Van de Poppe compares the current increase to Ethereum's low in 2022, when the coin was trading near 1,300 dollars after a sharp drop from 4,800 dollars. At that time, the downside risk was very limited, and the upside potential was very large. Currently, Ethereum seems "to be slightly overvalued on the bullish side," he said. The last time ETH fluctuated around the $4,000 mark earlier this year, it underwent a significant correction of 65% down to $1,380. Van de Poppe warned that the risk of buying at this price level is considerably higher. Why Taking Profit is Important The trader emphasized the necessity of securing profits instead of holding during volatile periods. "If you avoid take profit, you risk getting stuck in the next bear market," he said, noting that compound profits are a better long-term strategy than simply hoping the price will go higher. To illustrate, Van de Poppe shared an investment portfolio scenario. He stated that selling 30% of the held ETH after a major bullish run would mitigate the impact of a correction and also provide cash to buy back at lower prices. Therefore, investors can accumulate more ETH over time while still managing risk. On the chart, Ethereum is showing signs of being overbought. Van de Poppe points out the high RSI across multiple timeframes and notes that the trading volume indicates that short positions have been liquidated while long positions are being heavily sold off. He also highlighted past examples when ETH surpassed previous highs but then dropped sharply by 40–50% shortly after. He added that it would not be surprising if the price dropped back to the 3,600–4,000 dollar range. Can Transfer to Altcoin According to Van de Poppe, the money flow cycle in cryptocurrency moves from Bitcoin to Ethereum, and then to altcoins. He stated that ETH is entering a volatile phase, where liquidity is shifting to ecosystem projects like Optimism, Arbitrum, and other projects that still have bullish potential. "Nothing goes up forever," he said. "Taking profit right now ensures you are safer than regretting later." Although Van de Poppe believes that Ethereum remains strong in the long term, he argues that short term risks are leaning towards bearish. Therefore, he advises reducing 20–40% of held ETH, taking profit, and maintaining flexibility for the next buying opportunity.