Ethereum Price Prediction: ETH Soars 59% in a Single Month Facing Correction Risks, Market Enters "Overheated" Adjustment Phase

Ethereum (ETH) has risen 59% in the last 30 days, with the price soaring to nearly $3,900, attracting widespread attention from the Crypto Assets community. However, analysts warn that the excessive excitement on social media may signal an impending pullback in prices.

Today (28th) in the Asian early session, Ethereum is temporarily reported at 3,845 USD, continuing the rebound trend from the weekend.

(Source: Gate)

According to data analysis company Santiment, the recent surge in ETH has been accompanied by a spike in mentions and reports on social media platforms, which typically indicates that the market is "overheated" and may be overvalued, thus increasing the risk of a pullback.

Since the beginning of May, the price ratio of ETH/BTC has increased by 70%, which has led to a surge in discussions surrounding Ethereum.

Santiment indicates that when an asset's "social media dominance" surges, it often reflects a state of excessive excitement—this is a common characteristic before a market pullback.

However, not all signs indicate that a bear market is imminent.

Santiment points out that meme coins like Dogecoin (DOGE) are currently in a sluggish state, which is different from the speculative bubble phase commonly seen at the peak of market cycles.

Another factor supporting the pump of Ethereum is the growing interest from enterprises.

SharpLink Gaming and Bitmine Immersion Technologies are actively purchasing ETH, creating a trend of accumulation, which some analysts refer to as the "Strategy Effect" of Ethereum.

Galaxy Digital CEO Michael Novogratz also believes that due to the limited supply of ETH and strong demand from retail and institutional investors, ETH could potentially surpass BTC in the coming months.

As of now, ETH has quickly risen from over $2,500 to $3,858.

Although the upward trend may continue, experts advise investors to remain cautious, as the market may soon enter a pullback phase if the upward trend is primarily driven by speculative sentiment rather than fundamentals.