Ethereum: Overbought and overcrowded, is ETH due for a cooldown?

Key Points

1. Ethereum's Q3 ROI of 46.62% has outpaced previous quarters, with its price around $3,640, but its daily RSI indicates it may be overbought.

2. Bitcoin's dominance (BTC.D) is approaching a key 60% support zone, which could signal a shift back to BTC and a potential pullback for ETH.

3. Over 95% of ETH's supply is currently profitable, a level that historically precedes profit-taking and price reversals, as seen in late 2024 and early 2025.

4. Two new whale wallets acquired 58,268 ETH at an average cost of $3,680, totaling roughly $212 million, adding to the $18 billion+ locked in the market.

5. Despite ETH's strong performance, technical indicators and historical patterns suggest a potential pullback before it can target the $4,000 price level again.