Ethereum’s ‘Rare Oversold Signal’ Hints at ETH Price Rebound
The post Ethereum’s ‘Rare Oversold Signal’ Hints at ETH Price Rebound appeared on BitcoinEthereumNews.com.
Key takeaways: Ether’s “rare oversold” RSI, historically tied to major ETH price rallies, suggests a price reversal in the short-term. ETH traders say price must stay above the $3,800-$3,900 range to avoid more losses. Ether (ETH) traders expect a short-term bounce as a key ETH price metric sinks to its lowest levels in several months. Data from Cointelegraph Markets Pro and TradingView revealed extremely “oversold” conditions on the ETH/USD relative strength index (RSI). ETH price dip sends RSI back to April Ether’s 20% drop below $4,000 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: Hong Kong’s $500M HashKey Fund: How DATs could redefine BTC and ETH treasuries 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. ETH/USD four-hour chart. Source: Cointrelegraph/TradingView 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,” said crypto markets commentator Coin Bureau in an X post on Friday, adding that it is a “rare” signal from Ether’s price action. “For just the 19th time in 10 years, $ETH’s 4H RSI has dropped below 15 — a rare oversold signal.” ETH/USD four-hour RSI. Source: Coin Bureau With the latest drawdown, traders quickly suggested that the ETH price was due for…
