Ethereum is at risk of correction after a 59% increase in 30 days.

Ethereum (ETH) has just recorded an impressive increase of 59% over the past 30 days, bringing the price close to 3,900 USD and drawing attention from the cryptocurrency community. However, analysts are warning that excessive excitement on social media may be a sign of an impending price correction.

According to the data analysis company Santiment, the recent surge of ETH is accompanied by a spike in mentions and coverage on social media platforms. This is often an indication that the market is becoming "overheated" and it may be overvalued, increasing the risk of a reversal.

Since the beginning of May, the ETH price ratio to BTC has increased by up to 70%, contributing to a surge in lively discussions around Ethereum. Santiment noted that when the "social media dominance" of an asset skyrockets, it often reflects an overly euphoric state — a common characteristic before the market corrects.

However, not all signals indicate that a downtrend is imminent. Santiment points out that memecoins like Dogecoin are currently experiencing low levels of interest, unlike the speculative bubble phase often seen at market cycle peaks.

Another factor supporting the upward trend of Ethereum is the growing interest from businesses. Some companies like SharpLink Gaming and Bitmine Immersion Technologies are actively buying ETH, creating an accumulation trend that some analysts liken to the "Michael Saylor effect" for Ethereum.

Michael Novogratz — CEO of Galaxy Digital — also believes that ETH has superior potential over BTC in the coming months, thanks to limited supply and strong demand from both individual and institutional investors.

As of now, ETH has increased from over 2,500 USD to 3,858 USD in a short time.

ETH price chart | Source: Bitcoin MagazineAlthough the upward trend may continue, experts recommend that investors be cautious, as if the rally is primarily driven by speculative sentiment rather than fundamental factors, the market may soon enter a correction phase.

Mr. Teacher