Ethereum Price Rally May Be Due for Correction as Market Enters Overbought Territory

Ethereum's recent price surge has put it on a strong bullish trend, but experts warn that the market may be due for a correction.

After breaking out of its prolonged bearish structure and pushing through several key resistance zones, Ethereum is now trading around $2.5K and testing the major $2.4K-$2.5K resistance zone.

Momentum remains firmly bullish, supporting the possibility of continuation if buyers can absorb the available supply around this area.

However, the RSI has recently entered overbought territory, indicating that the market is becoming increasingly extended and vulnerable to a temporary pullback or sideways consolidation.

Despite this warning sign, the technical picture suggests that Ethereum's broader momentum remains favorable for bullish continuation. A period of consolidation or a temporary pullback could occur first as the market absorbs supply following the recent impulsive rally.