Ethereum News Today: LDO and ENA Hit Overbought Levels as Traders Warn of Short-Term Corrections

Late 2025 has brought renewed volatility to the cryptocurrency market, with several tokens reaching extreme levels on technical indicators. Among the most prominent signals are two assets currently in overbought territory—raising caution for traders entering the week ahead. According to recent analysis from market observers, these cryptocurrencies may be due for corrections or at least periods of consolidation, making them high-risk entries for new positions [1].

One of the coins under scrutiny is Lido DAO (LDO). The token, which operates within the staking and liquid staking derivatives space, has shown signs of being overextended. The Relative Strength Index (RSI) for LDO has moved into overbought levels, hitting 79.41 on the four-hour chart and remaining above 72 on the daily [1]. This condition is often seen as a precursor to short-term pullbacks, especially when speculative buying begins to lose steam. LDO’s role in the broader DeFi ecosystem makes its movements significant, and any pullback could ripple through related assets.

The second cryptocurrency flagged for overbought conditions is Ethena (ENA). While ENA has been a consistent performer in 2025, its recent surge has pushed the RSI to 73.75 on the four-hour chart and 73.41 on the daily—both above the overbought threshold [1]. The token has risen 5.46% in the past day to $0.7749. Notably, crypto trading analyst Ali Martinez observed that Ethena has broken out of a bullish flag pattern, signaling a potential continuation of its July rally [1]. The possible breakout points to upside targets of $1 and $1.50 based on Fibonacci extensions, provided momentum holds above the $0.70 support.

The broader market context suggests that while bullish momentum is still present, especially with Bitcoin and Ethereum leading the charge, signs of exhaustion are beginning to emerge. The total market capitalization of cryptocurrencies now exceeds $3.47 trillion, driven largely by institutional adoption and ongoing upgrades in major networks [3]. However, as technical indicators show, the market is not immune to short-term corrections, especially when key assets like LDO and ENA reach extended levels.

The overbought status of these two tokens should serve as a warning for traders who may be considering new long positions. Historical patterns suggest that overbought conditions often precede short-term reversals, particularly when there is no significant fundamental development to justify the price action. For investors who are already holding these tokens, a cautious approach may be prudent—using key resistance levels as potential exit points or stop-loss triggers.

While there are still strong arguments for long-term bullishness—particularly with Ethereum’s upcoming ecosystem developments and Bitcoin’s continued dominance—short-term traders should be wary of entering at current levels without a well-defined risk management plan. The next few trading sessions could be critical in determining whether these tokens consolidate or break higher, making it an important time for monitoring both price action and market sentiment.

Source:

[1] FinBold - [https://finbold.com/2-overbought-cryptocurrencies-to-avoid-trading-this-week-3/](https://finbold.com/2-overbought-cryptocurrencies-to-avoid-trading-this-week-3/)

[2] CryptoDnes.bg - [https://cryptodnes.bg/en/ethereum-price-prediction-eth-soars-26-as-bulls-target-5000-next/](https://cryptodnes.bg/en/ethereum-price-prediction-eth-soars-26-as-bulls-target-5000-next/)

[3] InteractiveCrypto - [https://www.interactivecrypto.com/this-hidden-crypto-strategy-could-turn-1000-into-millions-by-2026act-fast](https://www.interactivecrypto.com/this-hidden-crypto-strategy-could-turn-1000-into-millions-by-2026act-fast)