Ethereum rises 40% in a week, but analysts warn of correction

Ethereum (ETH) achieved an impressive profit of almost 40% last week and left the wider cryptomarkt far behind. For comparison: the total market grew by less than 12%in the same period. Yet analysts warn of a possible relapse, partly due to technical signals that indicate overheating.

Dominance rises, but signs of overheating?

The recent advance of Ethereum was accompanied by an increase in market dominance (ETH.D), which is now around 10% – a level that was last reached in May 2021. Although such an increase seems positive at first sight, some analysts see it as a possible sign of overheating.

This care is strengthened by the Relative Strength Index (RSI), a commonly used indicator that indicates whether an asset has been bought or sold over. Currently, the RSI of Ethereum is above 80, which often precedes a correction. For example, the ETH dominance fell by 17.5% in July 2024 after the RSI reached a comparable level. From that perspective, a temporary relapse would not necessarily be negative, but to contribute to a healthier and more sustainable price development.

How deep can the course drop?

Although nobody can predict exactly how far the rate can possibly fall, there are clear support levels. The zone around $ 2,200 is the first safety net, with the $ 2,000 limit as even more important support. If Ethereum drops under that, the risk of a sharp correction increases considerably.

Yet many analysts remain optimistic about the long -term prospects. For example, crypto analyst MilkybullCrypto predicts a course of $ 10,000 for Ethereum-an increase of almost 300% compared to the current price level. Whether that scenario becomes reality must show the future.