Ethereum RSI Oversold Signal Suggests Price Rebound
Ethereum’s ETH price dropped 20% over two weeks, pushing the four-hour Relative Strength Index (RSI) to 14.5—its lowest reading since April. This rare oversold signal, historically tied to major short-term rallies, indicates potential for an ETH price rebound. Whale accumulation at lower levels and past patterns support a relief bounce. Traders are watching the $3,800–$3,900 zone: holding above $3,900 could trigger a rally to test the declining EMAs near $4,100, while a break below $3,800 risks a deeper correction toward $3,400 or $3,600. The daily RSI is now the most oversold since June 2025; the last time ETH reached similar extremes, it rallied 134% in two months. Monitoring Ethereum RSI levels alongside key support and resistance will help traders navigate short-term opportunities and manage risk.
Bullish
The exceptionally low four-hour Ethereum RSI—below 15 for only the 19th time in a decade—signals seller exhaustion and historical short-term rebounds. Past instances, including April’s dip near $1,400 and June 2025’s oversold period, preceded rallies exceeding 100%. Whale accumulation at lower levels further supports a potential ETH price rebound. Key short-term support at $3,800–$3,900 and resistance near $4,100 EMAs provide clear trading levels, suggesting an opportunity for a bounce if these zones hold. In the long term, sustained recovery above these thresholds could rebuild bullish momentum toward new highs, while a breach below $3,800 would risk deeper correction. Given these factors, the outlook is bullish for ETH in both the near term and over the coming months.