A crypto strategist identified what he calls a “historic oversold” signal on Ether’s Relative Strength Index (RSI), which suggests a major bullish rebound may be imminent.
However, AvaTrade offers conflicting views and warns that it should be treated as a potential early sign that needs confirmation from broader market momentum.
The RSI Signal and Market Debate
AvaTrade explained that RSI is a momentum oscillator that measures price speed and changes on a range of 0 to 100. Values above 70 are considered overbought, suggesting that prices may soon drop, while those below 30 are usually seen as oversold, meaning seller exhaustion and a possible rebound.
Crypto analyst Quinten François believes that the recent ETH reading reveals a rare oversold setting, which means increasing opportunities and a quick upward trend. In a post on X, he described it as one of the “largest oversold signals in history,” which irresistibly calls for a wide debate among traders and investors.
AltIndex data shows that ETH’s RSI hangs around 34 on the daily chart, indicating that it is slightly oversold. On the other hand, an AInvest analyst pointed out that the metric is in the neutral area, which means that the cryptocurrency still faces a downside risk before any significant reversal begins.
As noted by HighStrike Trading, this is why investors should wait for confirmation before acting, either through an RSI retracement above 30, a bullish breakout with the indicator rising while price declines, or ETH moving back above key resistance levels.
What the Broader Market is Signaling Beyond the RSI
A current view on Perplexity AI shows the major support rests around $3,800, with immediate resistance above $3,900 and bigger bumps at $4,000. Meanwhile, INVESTX’s early signal shows that momentum indicators such as MACD are decreasing, and trade volumes remain low, which aren’t ideal conditions for a specific rise just yet.
The general sentiment of the market provides an additional perspective. BTC’s dominance remains high, which means ETH’s and other altcoins are underperforming. Meanwhile, TradingView says that exchange funding rates are falling, which are signs of reduced positive sentiment.
The “record oversold” RSI evaluation is notable, particularly when compared to previous rebounds. However, compared with data from different periods and insufficient technical proof, the justification for a major shift is not entirely strong.
For the time being, traders can view the flash as a yellow light rather than a green light, which can serve as a potential early indicator of a spike that needs to be supported by price action and broader market momentum.
