Ethereum's market dominance has surged to over 10%, the highest since May 2021, but signs of overheating suggest caution for ETH bulls. The relative strength index (RSI) reached overbought levels last seen before previous major pullbacks, historically indicating imminent corrections. Data shows that as Ethereum's dominance rises, it often signals a decline to its 50-day moving average, which currently stands around 8.24%. Additionally, a bearish divergence is forming on the four-hour ETH/USD chart, indicating potential price weakness ahead. As ETH hovers near the $2,740 Fibonacci extension, profit-taking may trigger a short-term price drop of 10-15%, with targets around $2,330 to $2,190. Despite these near-term risks, some analysts are optimistic, suggesting that this pullback could present a buying opportunity before a potential rise towards $3,500-$3,800. Investors are advised to conduct thorough research before making any trading decisions.

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