Engine limit or Surge or Stall: Engine indications are rapidly approaching or exceeding limits.
How long does the EGT have to exceed the maximum in flight EGT before it is considered to be severe damage? Boeing guidance suggests that severe damage should be accompanied by vibration to indicate such.
It's logical to consider engine limit first as the actions are appropriate. If the EGT drops with thrust lever retardation then it is a better first response than launching straight into severe damage and instant shutdown.