Ethereum (ETH) has been experiencing a significant price drop, with its value falling by 20% in the past two weeks. This decline has led to the Relative Strength Index (RSI) reaching extremely “oversold” conditions, which is a rare occurrence. The RSI is a metric used to measure the strength of a trend, and it has three important levels: the 30 “oversold” border, the 50 center, and the 70 “overbought” threshold.
Ethereum’s RSI Reaches Historic Lows
The last time the ETH/USD RSI was this low was on April 7, when the price was trading at around $1,400. This sharp decline is rare and has taken the ETH/USD from “overbought” to “oversold” in less than two weeks. According to Crypto Market Commentator Coin Bureau, this is only the 19th time in 10 years that the $4H-RSI of $ETH has dropped under 15, which is a rare oversold signal.
Analysts Expect a Short-Term Price Reversal
With the latest drawdown, retailers are suggesting that the ETH price has to be relieved due to seller exhaustion. Analyst Mickybull Crypto noted that the RSI is in a zone that, like in June, triggers a bullish reversal, and outlined “sign” that the local bottom is likely for ETH. Another analyst, Max Crypto, said that Ethereum’s “Daily RSI has been at the top of the oversold zone since June 2025” and added that the last time ETH was so oversold, it rallied by 134% in just 2 months.
Important ETH Price Levels
While traders say that bears are still involved, there are several important price levels above and below the spot price. The pseudonymous analyst Crypto Devil emphasized that the last two times $ETH was so oversold on the 8h RSI, it marked the bottom. For Crypto Devil, the altcoin has to keep over $3,900 to secure a “rally back to test the declining EMAs around $4,100.
Colleagues Jelle said that the ETH price above the breakout level of the megaphone of $3,800 must be kept to avoid an “unpleasant” withdrawal. A collapse below $3,800 could accelerate a deeper correction to the lower target of a symmetrical triangle with $3,400.
This article does not contain investment advice or recommendations. Every investment and trade movement is a risk, and readers should carry out their own research results if they make a decision. For more information, visit https://cointelegraph.com/news/ethereum-flashes-rare-oversold-signal-since-1-4k-eth-price?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
