Ethereum RSI at April Lows, $5.2B Options Expire at $3.8K Strike
Ethereum’s relative strength index (RSI) has dropped to its lowest level since April, when ETH traded near $1,384. Since that low, ETH has surged about 189%, indicating strong momentum. Today, more than $5.2 billion worth of ETH options are set to expire, marking one of the largest quarter-end expiries on record. A concentrated cluster of strike prices sits around $3,800, defining a critical pain point for traders.
Large options expiries can lead to rapid shifts in implied volatility and liquidity. Rather than bet on a fixed direction post-expiry, prudent traders should monitor open interest, delta positioning and order-book depth. These metrics will reveal whether market makers adjust their hedges and reposition around the $3.8K strike. The combination of an oversold RSI and a key options pain point suggests that a firm move above $3,800 could signal the start of a fresh uptrend for Ethereum.
Bullish
Ethereum’s RSI hitting April lows indicates an oversold condition after a 189% rally. Historically, oversold signals often precede rebounds. Meanwhile, the $5.2B ETH options expiry at the $3,800 strike—one of the largest quarter-end expiries—creates a gamma and liquidity pain point. If Ether trades above this level, market makers will adjust hedges, potentially fueling a short squeeze and fresh buying pressure. Thus, combining technical oversold signals with a key options pain point points to a bullish outlook in both the short and medium term.