The price of Ethereum (ETH) is approaching the overbought zone on the 4-hour chart, with only about $200 remaining until the overbought line. Typically, once the overbought line is reached, the market often enters a period of adjustment.

For ETH, the most ideal trend at present might be to undergo a certain degree of consolidation at a high level, rather than rushing to continue the upward momentum. This strategy helps to digest short-term profit pressure and builds momentum for potential breakthroughs in the future.

It is worth noting that the second wave of the current price increase has already matched the previous wave in terms of price momentum. More importantly, there are currently no signs of momentum divergence, which is undoubtedly a positive signal.

The persistence of momentum indicates that, despite the significant increase in ETH, market buying interest remains strong. In this case, even if a short-term pullback occurs, the medium to long-term trend may still remain optimistic.

However, investors should remain vigilant and closely monitor market changes. When approaching overbought territory, it may be wise to moderately reduce positions or set take-profit levels. At the same time, be prepared for potential pullbacks and view them as possible buying opportunities.