According to Cointelegraph, Ethereum's market dominance has reached an overbought RSI level not seen since May 2021, a situation that has historically been accompanied by major corrections. ETH/USD shows bearish divergence on the four-hour chart, suggesting a potential price correction of 10-15%.
Despite short-term risks, some analysts believe that the pullback represents a 'buy the dip' opportunity, possibly driving prices toward $3,500-$3,800. Ether has risen over 50% since May, far exceeding the overall 15.25% increase in the cryptocurrency market.
Ethereum's market share has rebounded strongly, pushing its daily Relative Strength Index (RSI) to its most overbought territory since May 2021, raising concerns among traders about a short-term pullback. Historically, extreme RSI levels for ETH.D have marked the beginning of significant corrections.
ETH.D has declined over 17.5% in the past 315 days. The current RSI has once again exceeded 80, indicating that Ethereum's market share may be close to a local top. ETH.D is still below its 200-day Exponential Moving Average (EMA), a resistance level that has repeatedly constrained Ethereum's dominance.
The ETH/USD four-hour chart shows a classic bearish divergence, with price making new highs while momentum indicators are declining. Trader AlphaBTC points out that ETH shows 'three clear divergence drives,' which typically signal trend exhaustion. ETH is approaching the $2,740 Fibonacci extension, and profit-taking pressure may intensify, with potential short-term corrections toward the $2,330 or $2,190 low Fibonacci levels.
Independent market analyst Michaël van de Poppe suggests that the decline in ETH could be a 'buy the dip opportunity,' with the price ultimately exceeding $3,500. Trader Peter Brandt predicts that the price will 'moon shoot' beyond $3,800.
