According to Cointelegraph, Ethereum's market dominance has reached an unprecedented overbought RSI level not seen since May 2021, and historically, such situations are often accompanied by significant corrections. The ETH/USD four-hour chart shows bearish divergence, suggesting a potential price correction of 10-15%.
Despite short-term risks, some analysts believe the pullback presents a 'buying opportunity on dips,' potentially driving prices toward $3,500-$3,800. Ether has risen over 50% since May, far exceeding the overall cryptocurrency market's increase of 15.25%.
Ethereum's market share has rebounded strongly, driving its daily Relative Strength Index (RSI) to the 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 decreased by more than 17.5% over the past 315 days. The current RSI has again exceeded 80, indicating that Ethereum's market dominance may be approaching a local top. ETH.D remains 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 prices reaching new highs while momentum indicators decline. 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 short-term corrections potentially targeting the $2,330 or $2,190 low Fibonacci levels.
Independent market analyst Michaël van de Poppe suggests that ETH's decline may be a 'buying opportunity on dips,' with the ultimate price expected to exceed $3,500. Trader Peter Brandt predicts that prices will 'moon shot' beyond $3,800.
