Ethereum Correction Looms: Whale Buys, Upgrades & RSI Peak
Ethereum correction concerns have intensified as ETH surged toward $4,000, reaching overbought Relative Strength Index (RSI) levels and prompting profit-taking among short-term traders. Technical analysis suggests a potential pullback to around $3,400 could weigh on altcoins by up to 20%. On the ETH/BTC pair, sustained closes above 0.027 BTC point to a next target near 0.05 BTC amid volatility. However, large whale accumulation, growing corporate interest, and upcoming network upgrades — including proto-danksharding and full Proof-of-Stake implementation — may cushion an Ethereum correction. Traders are advised to set stop-loss orders, take partial profits, apply dollar-cost averaging (DCA), and diversify portfolios to manage risk during the expected consolidation phase.
Bearish
The news points to an impending Ethereum correction driven by overbought RSI readings and profit-taking, indicating short-term bearish pressure on ETH price. Technical signals, including potential support tests near $3,400 and volatility on the ETH/BTC pair, reinforce caution. Although network upgrades and whale accumulation offer medium-term bullish support, traders should prepare for drawdowns and increased volatility. Therefore, in the near term, Ethereum correction risks dominate sentiment, making a bearish market impact likely until consolidation stabilizes.