Ethereum RSI Hits Record Low as Selling Pressure Deepens
Ethereum RSI has fallen to the lowest level since the asset’s launch, highlighting extreme oversold conditions. On June 6, daily Ethereum RSI readings dropped to roughly 17–25, with levels under 20 typically appearing only during true market crises. Monthly momentum indicators also show similarly historic weakness.
Price action mirrors the momentum sell-off. In early June, ETH traded between $1,569 and $1,778, down about 64% from the August 2025 peak near $4,946. The market cap was around $190B. On-chain/flow data adds another stress signal: exchange balances fell to about 14.8 million ETH, the lowest since 2016.
Traders are likely to focus on confirmation for a rebound. The article notes that prior ultra-low Ethereum RSI periods occurred around the FTX crash (late 2022) and the COVID sell-off (March 2020), both followed by major recoveries. For a potential reversal, the key checklist is whether Ethereum RSI can reclaim and hold the 30 level on daily timeframes, whether exchange balances stop declining, and whether volume improves on green candles.
Bearish
The news highlights severe downside momentum: Ethereum RSI is at a record low (daily ~17–25) and the asset is in a sharp drawdown from the 2025 peak, alongside decade-low exchange balances. This usually means sellers have control in the short term, so near-term trading bias remains bearish even if oversold conditions can later enable bounces.
Historically, the article cites major crises (FTX 2022 and COVID 2020) where extreme RSI eventually resolved with higher prices. That supports a potential mean-reversion bounce later. However, today’s combination—record-low momentum plus price still trading far below the prior high—suggests confirmation hasn’t arrived yet.
For traders: in the short term, expect volatility and continued risk of further downside until Ethereum RSI reclaims 30 and stabilizes, and until exchange balances stop declining. In the longer term, such extreme oversold readings can improve the odds of a rebound, but timing is uncertain and often depends on broader market liquidity and risk appetite.