ETH Price May Be Due for a Sharp Correction as Momentum Runs on Fumes

ETH's price has reached $2,509, but it may be overextended. The Relative Strength Index (RSI) is above 80, and the Moving Average Convergence Divergence (MACD) momentum has stalled.

Despite a 2% daily increase in price, momentum is running on fumes. The RSI has clipped 80, and the MACD histogram has flatlined at zero, indicating that buying pressure has been exhausted.

The recent move to $2,509 has separated all major moving averages by significant amounts: $85 above the 7-day SMA, nearly $430 above the 20-day, and close to $560 above the 50-day. This level of separation is historically a precursor to sharp mean-reversion, not further extension.

Immediate resistance sits at $2,549, with stronger technical walls stacked just above at $2,589-$2,598, confluencing with the upper Bollinger Band. A clean close above $2,598 on volume would be a legitimate signal that bulls are in control and targeting the psychological $2,700 zone.