🚩📉 WATCH OUT FOR THE SURGE OF $ETH ! Overheated dominance suggests a possible pullback, although bulls see opportunity.
#Ethereum has recovered 10% of the market and has risen more than 50% this month, outperforming the crypto market overall. However, this increase in dominance (ETH.D) has pushed its daily RSI to overbought levels not seen since May 2021, historically followed by significant pullbacks. 😬
ETH.D also remains below its 200-day EMA, a key resistance. Previous overbought pullbacks led ETH.D towards its 50-day EMA, current support around 8.24%, suggesting a possible capital rotation out of #ETH in the coming weeks. 🔄
In the 4-hour chart of the ETH/USD pair, a classic bearish divergence is emerging, with prices making higher highs while momentum decreases. Trader AlphaBTC points out "three clear divergence impulses", a sign of trend exhaustion, with possible supports at Fibonacci levels of $2,330 or even $2,190 (a drop of 10%-15%). 📉
Despite short-term risks, analysts like Michaël van de Poppe see a potential drop as a "buying opportunity", anticipating a move towards $3,500, while veteran trader Peter Brandt predicts a rally even above $3,800. 🐂
Do you think Ethereum will experience a significant pullback in the short term due to its overbought condition? Would you take advantage of a possible drop as a buying opportunity?
