April

when

Coin

Key takeaways:
<ul>
 <li>Ether’s “rare oversold” RSI, historically tied to major ETH price rallies, suggests a price reversal in the short-term.</li>
 <li>ETH traders say price must stay above the $3,800-$3,900 range to avoid more losses.</li>
</ul>
 Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) traders expect a short-term bounce as a key ETH price metric sinks to its lowest levels in several months.
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA.." rel="noopener noreferrer nofollow">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank">TradingView</a> revealed extremely “oversold” conditions on the ETH/USD relative strength index (<a href="https://cointelegraph.com/news/here-s-3-ways-the-relative-strength-index-rsi-can-be-used-as-a-sell-signal" rel="noopener noreferrer nofollow" target="_self">RSI</a>).
<h2 id="eth-price-dip-sends-rsi-back-to-april">ETH price dip sends RSI back to April</h2>
<a href="https://cointelegraph.com/news/eth-price-below-4k-ethereum-biggest-loser-36-4m-liquidation" rel="noopener noreferrer nofollow">Ether's 20% drop below $4,000</a> from $4,800 over the last two weeks has significantly impacted low-time frame RSI.
On the four-hour chart, the RSI fell from local highs of 82 on Sept. 13 to six-month lows of 14.5 on Thursday.
Related: <a href="https://cointelegraph.com/explained/hong-kongs-500m-hashkey-fund-how-dats-could-redefine-btc-and-eth-treasuries" rel="noopener noreferrer nofollow">Hong Kong’s $500M HashKey Fund: How DATs could redefine BTC and ETH treasuries</a>
Such a sharp decline is rare, taking ETH/USD from “overbought” to “oversold” in less than two weeks. The last time that the index measured so low was on April 7, when ETH/USD traded at $1,400. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2025-09/01998573-a37e-7ae6-bd3c-23fd04a58e79" title="" alt="Ethereum flashes ‘rare oversold signal’ for first time since $1.4K ETH">
 <figcaption style="text-align: center;">
 ETH/USD four-hour chart. Source: Cointrelegraph/<a href="https://www.tradingview.com/x/eTeXfvPh/" rel="noopener noreferrer nofollow" target="_blank">TradingView</a>&nbsp;
 </figcaption>
</figure>
RSI measures trend strength and contains three key levels for observers: the 30 “oversold” boundary, the 50 midpoint and the 70 “overbought” threshold.
When the price crosses these levels, depending on the direction, traders can make inferences about the future of a given uptrend or downtrend. During bull markets, ETH regularly spends extended periods in “overbought” territory.
“ETH RSI flashes extreme lows,” <a href="https://x.com/coinbureau/status/1971419891849888178" rel="noopener noreferrer nofollow" target="_blank">said</a> crypto markets commentator Coin Bureau in an X post on Friday, adding that it is a “rare” signal from Ether’s price action.
<blockquote>
 “For just the 19th time in 10 years, $ETH’s 4H RSI has dropped below 15 — a rare oversold signal.”
</blockquote>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2025-09/01998573-ac92-722d-a1e6-a814fc267c74" title="" alt="Ethereum flashes ‘rare oversold signal’ for first time since $1.4K ETH">
 <figcaption style="text-align: center;">
 ETH/USD four-hour RSI. Source: Coin Bureau
 </figcaption>
</figure>
With the latest drawdown, traders quickly suggested that the ETH price was due for a relief bounce due to seller exhaustion.
“The RSI is in the zone that triggers bullish reversal as it did in June,” analyst Mickybull Crypto <a href="https://x.com/MikybullCrypto/status/1971478882755711237" rel="noopener noreferrer nofollow" target="_blank">said</a> in an X post, while outlining “signs that the local bottom is likely” in for ETH.
Zooming out, fellow analyst Max Crypto <a href="https://x.com/MaxCryptoxx/status/1971201411112485098" rel="noopener noreferrer nofollow" target="_blank">said</a> Ether’s “daily RSI is now the most oversold since June 2025,” adding:&nbsp;
<blockquote>
 “The last time ETH was this much oversold, it rallied 134% in just 2 months.”
</blockquote>
<blockquote class="twitter-tweet">
 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a> DAILY RSI IS NOW THE MOST OVERSOLD SINCE JUNE 2025. LAST TIME ETH WAS THIS MUCH OVERSOLD, IT RALLIED 134% IN JUST 2 MONTHS. <a href="https://t.co/UcKnSG4yF0" rel="noopener noreferrer nofollow">pic.twitter.com/UcKnSG4yF0</a>— Max Crypto (@MaxCryptoxx) <a href="https://twitter.com/MaxCryptoxx/status/1971201411112485098?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 25, 2025</a>
</blockquote>
As <a href="https://cointelegraph.com/news/ethereum-co-founder-sells-6m-eth-whales-bought-1-6b" rel="noopener noreferrer nofollow">Cointelegraph reported</a>, heavy accumulation by whales at lower levels supports the case of a possible short-term ETH price reversal.&nbsp;
<h2 id="key-eth-price-levels-to-watch-at-4-000">Key ETH price levels to watch at $4,000</h2>
While traders said <a href="https://cointelegraph.com/news/eth-futures-turn-bearish-a-market-overreaction-or-is-3-8k-next" rel="noopener noreferrer nofollow">bearish targets are still in play</a>, there are several key price levels to watch above and below the spot price.&nbsp;
The “last two times $ETH was this oversold on the 8H RSI, marked the bottom,” pseudonymous analyst Crypto Devil <a href="https://x.com/CryptoDevil9/status/1971461887847190730" rel="noopener noreferrer nofollow" target="_blank">pointed out</a> in a Friday X post.&nbsp;
For Crypto Devil, the altcoin needs to hold above $3,900 to secure a “rally back to test the declining EMAs” around $4,100.
<blockquote>
 “3.9K'ish is the zone to hold technically if we want to remain bullish going into Q4.”
</blockquote>
A deeper correction could see a retest of the $3,600 support or into the lower zone around $3,000-$3,300.
<figure>
 <img alt="Ethereum flashes ‘rare oversold signal’ for first time since $1.4K ETH" src="https://s3.cointelegraph.com/uploads/2025-09/01998577-a6e5-79b6-b540-cc3a636ae60f" title="">
 <figcaption style="text-align: center;">
 ETH/USD eight-hour chart. Source: Crypto Devil
 </figcaption>
</figure>
Fellow analyst Jelle <a href="https://x.com/CryptoJelleNL/status/1971461940620009934" rel="noopener noreferrer nofollow" target="_blank">said</a> that ETH price needed to hold above the <a href="https://cointelegraph.com/news/20k-eth-price-in-play-ethereum-belief-zone" rel="noopener noreferrer nofollow" target="_self">megaphone’s breakout</a> level of $3,800 to avoid an “uncomfortable” pullback lower.&nbsp;
<blockquote>
 “Hold here, and new all-time highs are next.”
</blockquote>
As <a href="https://cointelegraph.com/news/price-predictions-9-24-btc-eth-xrp-bnb-sol-doge-ada-hype-link-avax" rel="noopener noreferrer nofollow">Cointelegraph reported</a>, a collapse below $3,800 could accelerate a deeper correction toward the lower target of a symmetrical triangle at $3,400.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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

Table of Contents

Cointelegraph

Other articles published on Sep 26, 2025

Join our free newsletter for daily crypto updates!