Ethereum’s RSI Plummets: A Rare Oversold Miracle? 🚀💸

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Key takeaways:

  • Ether’s “rare oversold” RSI, historically tied to major ETH price rallies, suggests a potential price reversal in the short-term. 🎩💸

  • ETH traders say price must stay above the $3,800-$3,900 range to avoid more losses. A noble goal, if not for the fact that markets are as predictable as a Victorian gentleman’s heart. 💔

Ether (ETH) traders expect a short-term bounce as a key ETH price metric sinks to its lowest levels in several months. A tale as old as time-markets fall, then rise, then fall again. 📉📈

Data from CryptoMoon Markets Pro and TradingView reveal extremely “oversold” conditions on the ETH/USD relative strength index (RSI). The RSI, that most reliable of indicators, now resembles a hypochondriac with a penchant for drama. 🩺

ETH price dip sends RSI back to April

Ether’s 20% drop below $4,000 from $4,800 over the last two weeks has significantly impacted low-timeframe RSI. A tragedy of epic proportions, if only the RSI had a heart. 🎭

On the four-hour chart, the RSI fell from local highs of 82 on Sept. 13 to six-month lows of 14.5 on Thursday. A descent so steep, it makes a rollercoaster look like a leisurely stroll. 🎢

Such a sharp decline is rare, taking ETH/USD from “overbought” to “oversold” in less than two weeks. The last time that the index measured so low was on April 7, when ETH/USD traded at $1,400. A reminder that even the most bullish markets can turn bearish with the grace of a disgruntled cat. 🐱

RSI measures trend strength and contains three key levels for observers: the 30 “oversold” boundary, the 50 midpoint and the 70 “overbought” threshold. A trinity of market wisdom, if one can decipher its cryptic prophecies. 📊

When the price crosses these levels, depending on the direction, traders can make inferences about the future of a given uptrend or downtrend. A game of chance, if you ask me, but the traders are all too eager to play. 🃏

“ETH RSI flashes extreme lows,” said crypto markets commentator Coin Bureau in an X post on Friday, adding that it is a “rare” signal from Ether’s price action. A rare signal, indeed-like a unicorn in a cryptocurrency conference. 🦄

“For just the 19th time in 10 years, $ETH’s 4H RSI has dropped below 15 – a rare oversold signal.”

With the latest drawdown, traders quickly suggested that the ETH price was due for a relief bounce due to seller exhaustion. Seller exhaustion? More like seller retirement, if they had any sense. 🕵️‍♂️

“The RSI is in the zone that triggers bullish reversal as it did in June,” analyst Mickybull Crypto said in an X post while outlining “signs that the local bottom is likely” in for ETH. A local bottom? How quaint. 🛏️

Zooming out, fellow analyst Max Crypto said Ether’s “daily RSI is now the most oversold since June 2025,” adding: 

“The last time ETH was this much oversold, it rallied 134% in just 2 months.”

$ETH DAILY RSI IS NOW THE MOST OVERSOLD SINCE JUNE 2025.

LAST TIME ETH WAS THIS MUCH OVERSOLD, IT RALLIED 134% IN JUST 2 MONTHS.

– Max Crypto (@MaxCryptoxx) September 25, 2025

As CryptoMoon reported, heavy accumulation by whales at lower levels supports the case of a possible short-term ETH price reversal. Whales, ever the opportunists, swimming in a sea of optimism. 🐋

Key ETH price levels to watch at $4,000

While traders believe bearish targets are still in play, there are several key price levels to watch above and below the spot price. A balancing act, if ever there was one. 🧘‍♂️

The “last two times $ETH was this oversold on the 8H RSI, marked the bottom,” pseudonymous analyst Crypto Devil pointed out in a Friday X post. A bottom? Or merely a pause before the next fall? 🌀

For Crypto Devil, the altcoin needs to hold above $3,900 to secure a “rally back to test the declining EMAs” around $4,100. A rally? If only the market had the decency to comply. 🙃

“3.9K’ish is the zone to hold technically if we want to remain bullish going into Q4.”

A deeper correction could see a retest of the $3,600 support or into the lower zone around $3,000-$3,300. A descent into the abyss, should the market so choose. 🌑

Fellow analyst Jelle said that ETH price needed to hold above the megaphone’s breakout level of $3,800 to avoid an “uncomfortable” pullback lower. 

“Hold here, and new all-time highs are next.”

As CryptoMoon reported, a collapse below $3,800 could accelerate a deeper correction toward the lower target of a symmetrical triangle at $3,400. A symmetrical triangle? More like a symphony of despair. 🎻

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2025-09-26 13:53