Ethereum retakes 10% control of crypto market, but ETH bulls shouldn't celebrate yet
Ether (ETH) has increased over 50% in May, outperforming the broader crypto market's 15.25% gain, pushing Ethereum's market dominance (ETH.D) toward the 10% threshold for the first time since March. However, the daily relative strength index (RSI) for ETH is at its most overbought level since May 2021, indicating potential for a pullback. Historical patterns show that extreme RSI levels often precede significant declines, with ETH.D previously dropping over 17.5% after similar spikes. ETH.D is currently below its 200-day exponential moving average, suggesting resistance and potential decline toward its 50-day EMA around 8.24%. A bearish divergence on the four-hour ETH/USD chart indicates possible price corrections, with potential support levels around $2,330 to $2,190. Analysts suggest that any decline could present a buying opportunity, with future price targets exceeding $3,500 or even $3,800.
