This signal suggests the possibility of a strong Ethereum correction similar to that of 2022.

The Korea Premium Index for Ethereum (ETH) – a measure of the price difference between South Korean exchanges and the global market – has surpassed 8%, reflecting an increasingly widening price gap.

In the past, this index was considered a reliable signal indicating that the market was approaching a speculative peak, as had occurred before the strong correction of Ethereum at the beginning of 2022.

Current developments indicate that a wave of individual investors is rushing into the market, primarily driven by the FOMO effect rather than genuine demand. This pattern often paves the way for larger investors to take profits, capitalizing on the inflated valuations.

Therefore, the continued widening of price discrepancies is a warning that the current uptrend may lack sustainability, especially if the bullish sentiment of retail investors weakens or institutional cash flow has not yet returned.

The social dominance of Ethereum declines – a warning signal of weakening momentum

At the time of writing, the Social Dominance of Ethereum has decreased to 5.17%, reflecting a cooling off in discussions about ETH, even though the price has just seen a brief recovery.

This decline indicates that retail investors are gradually losing interest – an early warning signal that the current upward momentum may weaken. Historically, Ethereum has often struggled to maintain its upward trend when the “frenzy” on social media cools down, as much of the short-term demand comes from the activities of this group of investors.

Additionally, the increasing gap between community sentiment and current price strength indicates that traders' confidence is waning. If this trend continues, Ethereum is likely to face pressure as market attention shifts to more compelling stories in the altcoin world.

Source: Santiment## NVT ratio surges – Price increases faster than network activity

The NVT ratio (Network Value to Transactions) of Ethereum has just surged to 916, indicating that the market value of ETH is expanding much faster than the actual activity levels on the network.

This suggests that the current upward trend is primarily driven by speculation, rather than an increase in the actual usage of the Ethereum network. Historically, high NVT often reflects an overvaluation combined with weak trading volume, usually signaling an upcoming accumulation or correction phase.

Although there are no clear signs of an immediate price drop, this indicator emphasizes that the current uptrend is largely based on market sentiment rather than intrinsic value – increasing the risk of Ethereum entering a “cooling off” phase in the short term.

Source: Santiment## Profit-taking pressure increases – Signs from Spot Taker CVD data

Spot Taker CVD data shows that the seller (taker sell) is dominant, reflecting increasing profit-taking pressure as many traders withdraw profits after the recent strong rally. This trend indicates that the token is gradually shifting from short-term investors to latecomers in the bull cycle.

When combined with declining social signals and a high NVT ratio, the overall picture suggests that Ethereum's upward momentum may soon face resistance. If selling pressure continues to increase, ETH is likely to face challenges in maintaining the current price level, especially as the inflow from retail investors begins to slow down.

Source: CryptoQuant## Can Ethereum maintain its upward momentum amid a series of risks?

The combination of the soaring South Korean Premium index, declining social interest, and the simultaneous rise in NVT ratio indicates that the Ethereum market is in an overheated state, vulnerable to the risk of correction.

Although the upward momentum remains in the short term, the profit-taking wave along with the weakening demand from individual investors may push the market towards a short-term correction.

If the fundamental factors are not reinforced in line with the current valuation, the recovery momentum of Ethereum may soon face the first significant resistance zone, posing a challenge for investors hoping for strong growth.

SN_Nour