According to Cointelegraph, Ether (ETH) traders are anticipating a short-term price rebound as a significant ETH price metric has reached its lowest point in several months. Data from Cointelegraph Markets Pro and TradingView show that the ETH/USD relative strength index (RSI) is experiencing extremely 'oversold' conditions. This development follows Ether's 20% decline from $4,800 to below $4,000 over the past two weeks, which has notably affected the low-timeframe RSI.
On the four-hour chart, the RSI plummeted from a local high of 82 on September 13 to a six-month low of 14.5. Such a rapid decline is uncommon, transitioning ETH/USD from 'overbought' to 'oversold' in under two weeks. The last instance of such a low index was on April 7, when ETH/USD was trading at $1,400. The RSI, which measures trend strength, has three critical levels: the 30 'oversold' boundary, the 50 midpoint, and the 70 'overbought' threshold. Crossing these levels can provide traders with insights into potential future trends. During bull markets, ETH often remains in 'overbought' territory for extended periods.
Crypto markets commentator Coin Bureau highlighted this rare signal from Ether's price action, noting that it is only the 19th time in a decade that ETH's 4-hour RSI has dropped below 15. This has led traders to suggest that the ETH price might experience a relief bounce due to seller exhaustion. Analyst Mickybull Crypto pointed out that the RSI is in a zone that typically triggers bullish reversals, similar to what occurred in June. Fellow analyst Max Crypto added that Ether's daily RSI is now the most oversold since June 2025, recalling that the last time ETH was this oversold, it rallied 134% in just two months.
As reported by Cointelegraph, significant accumulation by whales at lower levels supports the possibility of a short-term ETH price reversal. While traders remain cautious about bearish targets, several key price levels are being monitored. Pseudonymous analyst Crypto Devil emphasized the importance of ETH holding above $3,900 to potentially rally back to test the declining EMAs around $4,100. A deeper correction could lead to a retest of the $3,600 support or even lower zones around $3,000-$3,300. Analyst Jelle also noted that ETH needs to maintain above the megaphone's breakout level of $3,800 to avoid a significant pullback. A drop below $3,800 could accelerate a deeper correction toward the lower target of a symmetrical triangle at $3,400. This article does not provide investment advice, and readers should conduct their own research before making any investment decisions.
Jixu
