On May 27, Pepe (PEPE) reached a record high, rising 7.60% to $0.00001725. This comes as a result of US applications for the Ether Exchange Traded Fund (ETH) 📈 being approved. Traders have begun to view Ethereum-based meme coins as a high-risk, but lucrative investment.

Other Ethereum meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Mog Coin (MOG), also saw significant gains after ETF applications were approved.

However, the Pepe market could run out of steam in the coming weeks due to the growing gap between its price and the falling relative strength index (RSI).

If a correction occurs, the PEPE price could fall to its 50-day exponential moving average (50-day EMA) around $0.00000965 by June, which would be about 40% of current price levels.

At the same time, the ongoing uptrend could see PEPE test the 2.618 Fibonacci retracement level near $0.00002203 in the coming weeks, which is 32% higher than current prices.

However, the richest PEPE investors have begun dumping their holdings, adding to the bearish outlook.