Key takeaways:
Ether’s “rare oversold” RSI, historically associated with significant ETH price rallies, indicates a potential short-term price reversal.
ETH traders emphasize the need for the price to remain above the $3,800-$3,900 range to prevent further losses.
Traders of Ether (ETH) anticipate a brief upward movement as a crucial ETH price indicator hits its lowest point in several months.
Data sourced from Cointelegraph Markets Pro and TradingView has highlighted extremely “oversold” conditions on the ETH/USD relative strength index (RSI).
ETH price decline drives RSI back to April levels
Ether’s 20% decline below $4,000 from $4,800 in the past two weeks has greatly affected the low-timeframe RSI.
On the four-hour chart, the RSI dropped from local highs of 82 on Sept. 13 to six-month lows of 14.5 on Thursday.
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This sharp decline is unusual, bringing ETH/USD from “overbought” to “oversold” in under two weeks. The last recorded instance of such a low reading was on April 7, when ETH/USD traded at $1,400.
RSI measures trend strength and includes three critical levels for analysts: the 30 “oversold” threshold, the 50 midpoint, and the 70 “overbought” boundary.
When prices cross these thresholds, traders gain insights into potential uptrends or downtrends. During bullish markets, ETH frequently spends extended durations in “overbought” territory.
“ETH RSI showing extreme lows,” noted crypto market analyst Coin Bureau in a post on X, mentioning that this is a “rare” indication from Ether’s price movements.
“For just the 19th time in a decade, $ETH’s 4H RSI has dipped below 15 — a rare oversold signal.”
Following the latest decline, traders quickly indicated that a relief bounce for ETH could be forthcoming due to reduced selling pressure.
“The RSI is signaling a potential bullish reversal as observed in June,” analyst Mickybull Crypto commented in a post on X, suggesting “indications that the local bottom may be near” for ETH.
Broadening the perspective, fellow analyst Max Crypto expressed that Ether’s “daily RSI is now the most oversold since June 2025,” adding:
“The last instance of ETH being this oversold resulted in a 134% rally over just two months.”
$ETH DAILY RSI IS AT ITS MOST OVERSOLD SINCE JUNE 2025.
LAST TIME ETH WAS THIS OVERSOLD, IT EXPERIENCED A 134% RALLY IN JUST 2 MONTHS. pic.twitter.com/UcKnSG4yF0
— Max Crypto (@MaxCryptoxx) September 25, 2025
As reported by Cointelegraph, substantial accumulation by whales at lower levels reinforces the likelihood of a short-term ETH price reversal.
Critical ETH price levels to monitor near $4,000
Despite traders asserting that bearish targets remain relevant, several key price levels warrant attention above and below the current market price.
The “last two instances when $ETH was this oversold on the 8H RSI marked the bottom,” noted pseudonymous analyst Crypto Devil in a post on X on Friday.
For Crypto Devil, the altcoin must maintain a position above $3,900 to enable a “rally back to test the declining EMAs” around $4,100.
“3.9K’ish is the zone to maintain technically if we wish to stay bullish heading into Q4.”
In the event of a deeper correction, a retest of the $3,600 support level or a plunge into the lower zone around $3,000-$3,300 is conceivable.
Another analyst, Jelle mentioned that ETH price needs to hold above the breakout level of $3,800 to sidestep an “unpleasant” pullback lower.
“If it maintains this level, new all-time highs could follow.”
As reported by Cointelegraph, a drop below $3,800 could hasten a more profound correction towards 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.
