Ethereum rehearsed 10% control over the crypto market, but should not celebrate bulls yet

Key takeaways:

• The dominance in the Ethereum market has hit the excessive RSI levels that have not been seen since May 2021, historically followed by major pullbacks.

• ETH/USD shows a bearish variation on the four-hour chart, indicating a potential 10-15% price correction.

• Despite the close dangers, some analysts look at a pullback as a “buy-the-DIP” setup before a possible move towards $ 3,500- $ 3,800.

Ether (Eth) advanced more than 50% month-to-date in May, widely more than 15.25% of the crypto market market income. The rally has pushed the dominance of the Ethereum (eth.d) market to a critical 10% threshold at the first time since March.

But the rising dominance includes signs of overheating, indicating that Ethereum bulls should not celebrate the rally.

The RSI of Ether is most excessively excessive since May 2021

Strongly recovery in Ethereum’s crypto market sharing pushed the sun -day Relative Strength Index (RSI) In the mostoverbought zone since May 2021, raising red flags for entrepreneurs who bet further upside down, at least for a short time.

Historically, the said RSI level at Eth.D marked the beginning of the major pullbacks. A noteworthy example took place in early July 2024, when ETH’s dominance sank near similar RSI levels.

In the following 315 days, eth.D dropped more than 17.5%. The current RSI Spike, again above 80, will mimic a similar prefunction, suggesting that Ethereum may be close to a local top in sharing its market.

Adding to the bearish outlook, eth.D remains below the 200-day exponential transfer of average (200-day EMA; the blue wave). This level of resistance has repeatedly trapped Ethereum’s dominance over previous recovery attempts.

The previous overbought pullbacks first pushed the Ethereum market sharing to the 50-day EMA (the red wave).

Therefore, the eth.d measure, the risks decreasing towards the current 50-day EMA support around 8.24% in June, suggesting potential capital rotation outside Ethereum markets in other coins in the coming weeks.

Bearish divergence signals 15% eth price drop

In the four-hour ETH/USD chart, a classic bearish variation is emerging, where Ethereum prices continue to print higher, but lower momentum indicators.

Crypto businessman Alphabtc It is noted that the ETH shows “three clear drivers of difference -Irs,” a setup that often precedes fatigue in the trend. He added that the main levels of Fibonacci are aligned with potential support in the zones, suggesting a pullback may be near.

With ETH hovering near the $ 2,740 fibonacci extension, the income pressure pressure may intensify, opening the door for a short -term correction towards lower fib levels around $ 2,330 or even $ 2,190, down 10% -15% from current prices.

Independent Market Analyst Michaël Van de Poppe suggests ETH collapse in the coming weeks can serve as a “buy-the-DIP opportunity,” indicating that cryptocurrency will eventually climb more than $ 3,500.

Related: Rungle returns of Altcoins and Falling USDT Stablecoin Dominance suggest ‘Alteason’ is here

Veteran businessman Peter Brandt is more likely to predict a “Moon shot“Rally to over $ 3,800.

This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.