Ethereum flashes ‘rare oversold signal’ for the first time since $1.4K ETH

Key takeaways:

• Ether’s “rare oversold” RSI, historically tied to large ETH terms rallies, suggests a imaginable terms reversal successful the short-term.

• ETH traders accidental terms indispensable enactment supra the $3,800-$3,900 scope to debar much losses.

Ether (ETH) traders expect a short-term bounce arsenic a cardinal ETH terms metric sinks to its lowest levels successful respective months.

Data from Cointelegraph Markets Pro and TradingView uncover highly “oversold” conditions connected the ETH/USD comparative spot scale (RSI).

ETH terms dip sends RSI backmost to April

Ether's 20% driblet beneath $4,000 from $4,800 implicit the past 2 weeks has importantly impacted low-timeframe RSI.

On the four-hour chart, the RSI fell from section highs of 82 connected Sept. 13 to six-month lows of 14.5 connected Thursday.

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Such a crisp diminution is rare, taking ETH/USD from “overbought” to “oversold” successful little than 2 weeks. The past clip that the scale measured truthful debased was connected April 7, erstwhile ETH/USD traded astatine $1,400.

ETH/USD four-hour chart. Source: Cointrelegraph/TradingView 

RSI measures inclination spot and contains 3 cardinal levels for observers: the 30 “oversold” boundary, the 50 midpoint and the 70 “overbought” threshold.

When the terms crosses these levels, depending connected the direction, traders tin marque inferences astir the aboriginal of a fixed uptrend oregon downtrend. During bull markets, ETH regularly spends extended periods successful “overbought” territory.

“ETH RSI flashes utmost lows,” said crypto markets commentator Coin Bureau successful an X station connected Friday, adding that it is simply a “rare” awesome from Ether’s terms action.

“For conscionable the 19th clip successful 10 years, $ETH’s 4H RSI has dropped beneath 15 — a uncommon oversold signal.”

ETH/USD four-hour RSI. Source: Coin Bureau

With the latest drawdown, traders rapidly suggested that the ETH terms was owed for a alleviation bounce owed to seller exhaustion.

“The RSI is successful the portion that triggers bullish reversal arsenic it did successful June,” expert Mickybull Crypto said successful an X station portion outlining “signs that the section bottommost is likely” successful for ETH.

Zooming out, chap expert Max Crypto said Ether’s “daily RSI is present the astir oversold since June 2025,” adding: 

“The past clip ETH was this overmuch oversold, it rallied 134% successful conscionable 2 months.”— Max Crypto (@MaxCryptoxx) September 25, 2025

As Cointelegraph reported, dense accumulation by whales astatine little levels supports the lawsuit of a imaginable short-term ETH terms reversal. 

Key ETH terms levels to ticker astatine $4,000

While traders judge bearish targets are inactive successful play, determination are respective cardinal terms levels to ticker supra and beneath the spot price. 

The “last 2 times $ETH was this oversold connected the 8H RSI, marked the bottom,” pseudonymous expert Crypto Devil pointed out successful a Friday X post. 

For Crypto Devil, the altcoin needs to clasp supra $3,900 to unafraid a “rally backmost to trial the declining EMAs” astir $4,100.

“3.9K'ish is the portion to clasp technically if we privation to stay bullish going into Q4.”

A deeper correction could spot a retest of the $3,600 enactment oregon into the little portion astir $3,000-$3,300.

ETH/USD eight-hour chart. Source: Crypto Devil

Fellow expert Jelle said that ETH terms needed to clasp supra the megaphone’s breakout level of $3,800 to debar an “uncomfortable” pullback lower. 

“Hold here, and caller all-time highs are next.”

As Cointelegraph reported, a illness beneath $3,800 could accelerate a deeper correction toward the little people of a symmetrical triangle astatine $3,400.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.