Essential Insights:
Ether’s “rare oversold” RSI, historically linked to significant ETH price rallies, indicates a potential short-term price rebound.
ETH traders emphasize the need for prices to remain above the $3,800-$3,900 range to prevent further losses.
Ether (ETH) traders anticipate a short-term rebound as a crucial ETH price metric plummets to its lowest levels in several months.
Data from Cointelegraph Markets Pro and TradingView show significantly “oversold” conditions on the ETH/USD relative strength index (RSI).
ETH Price Decline Sends RSI Back to April Levels
Ether’s 20% drop from $4,800 to below $4,000 in the last two weeks has greatly affected the low-timeframe RSI.
On the four-hour chart, the RSI fell from local highs of 82 on Sept. 13 to a six-month low of 14.5 on Thursday.
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This steep decline is uncommon, shifting ETH/USD from “overbought” to “oversold” in under two weeks. The last time the index was this low was on April 7, with ETH/USD trading at $1,400.
RSI measures trend strength and includes three critical levels for analysts: the 30 “oversold” boundary, the 50 midpoint, and the 70 “overbought” threshold.
When the price crosses these levels, traders can gauge the potential direction of an uptrend or downtrend. In bullish markets, ETH often remains in “overbought” territory for extended periods.
“ETH RSI shows extreme lows,” commented crypto market analyst Coin Bureau in a post on X, noting it as a “rare” signal from Ether’s price movements.
“For just the 19th time in a decade, $ETH’s 4H RSI has dropped below 15 — an unusual oversold signal.”
In light of the recent decline, traders quickly indicated that ETH price was set for a relief bounce due to seller fatigue.
“The RSI is in the area that triggers bullish reversals as it did in June,” analyst Mickybull Crypto mentioned in an X post, highlighting “signs that a local bottom is likely” for ETH.
Looking at the broader picture, fellow analyst Max Crypto stated that Ether’s “daily RSI is now the most oversold since June 2025,” adding:
“The last time ETH was this oversold, it surged 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. pic.twitter.com/UcKnSG4yF0
— Max Crypto (@MaxCryptoxx) September 25, 2025
As Cointelegraph noted, significant accumulation by whales at lower levels supports the likelihood of a short-term ETH price reversal.
Critical ETH Price Levels to Monitor at $4,000
While traders believe bearish targets remain active, several crucial price levels are to be monitored above and below the current spot price.
The “last two instances when $ETH was this oversold on the 8H RSI marked the bottom,” pseudonymous analyst Crypto Devil pointed out in an X post on Friday.
For Crypto Devil, the altcoin needs to maintain position above $3,900 to facilitate a “rally back to test the declining EMAs” near $4,100.
“3.9K’ish is the zone to hold technically if we want to remain bullish going into Q4.”
A more profound correction could retest the $3,600 support or dip into the lower range around $3,000-$3,300.
Fellow analyst Jelle remarked that the ETH price needs to sustain above the megaphone’s breakout level of $3,800 to avert an “uncomfortable” downturn.
“If we hold here, new all-time highs could be next.”
As Cointelegraph reported, a fall below $3,800 might trigger a deeper correction toward the lower target of a symmetrical triangle at $3,400.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
