$ETH

In the past week, Ethereum has been on a strong upward trend and is expected to challenge its all-time high next.

However, it is worth noting that both the daily RSI and MACD have shown a bearish divergence, which is a clear overbought signal.

Therefore, once the fifth wave shown in the chart is completed, which is the completion of the five-wave impulsive wave since June 22, Ethereum is likely to experience a significant pullback.

According to wave theory, it may pull back to near the starting point of the fifth wave.

So while maintaining a long-term bullish outlook on Ethereum, it is essential to be aware of the short-term pullback risks.