Ethereum Enters Extreme Oversold Territory: What Lies Ahead?

Analyst predicts ETH price rebound.

The RSI indicator for Ethereum has dropped to its lowest levels since April, when the cryptocurrency was trading at $1400. An analyst known as Mikybull Crypto has predicted a rebound in ETH’s price.

#Ethereum has started exhibiting some signs that the local bottom is likely in.

More than $1B piles of shorts sitting at the level of $4200 and longs liquidity has already cleared.

The funding rate is on negative similarly to tariff saga and it has been on a significant decline… pic.twitter.com/qYnlOsWatw

— Mikybull 🐂Crypto (@MikybullCrypto) September 26, 2025

“Ethereum has begun to show signs of forming a local bottom. Key metrics indicate a reversal. […] RSI has entered a zone that triggers a bullish reversal,” he wrote.

As noted by a crypto market researcher under the pseudonym Coin Bureau, the indicator has fallen below 15. He emphasized that this has only happened 19 times in the past decade.

“This is an extremely rare signal indicating the asset is extremely oversold,” he added.

A trader known as Max Crypto drew a parallel with June. According to him, in a similar situation, Ethereum’s price increased by 134% over two months.

$ETH DAILY RSI IS NOW THE MOST OVERSOLD SINCE JUNE 2025.

LAST TIME ETH WAS THIS MUCH OVERSOLD, IT RALLIED 134% IN JUST 2 MONTHS. pic.twitter.com/UcKnSG4yF0

— Max Crypto (@MaxCryptoxx) September 25, 2025

Which Levels to Watch?

An analyst under the pseudonym Crypto Devil also pointed to Ethereum approaching a local bottom. In his view, the asset needs to hold above $3900 to test resistance at $4100.

Last two times $ETH was this oversold on the 8h RSI, marked the bottom… is this time different lets see.

What we need to see now is $ETH hold c.3.9k, rally back to test the declining EMAs (4.1k).

3.9k zone also marks the retest of the previous tops (see post in part 2 below). pic.twitter.com/Rfy7SQJD2I

— Crypto Devil (@CryptoDevil9) September 26, 2025

A deeper correction could lead to a pullback to $3600 or into the range between $3300 and $3000, he noted.

Another expert, known as Jelle, believes Ethereum needs to maintain current levels. If so, the cryptocurrency could reach new all-time highs.

$ETH is retesting the megaphone breakout area 👀

Pulling back uncomfortably deep, in true ETH fashion.

Hold here, and new all-time highs are next. pic.twitter.com/QpMQKGrHKA

— Jelle (@CryptoJelleNL) September 26, 2025

At the time of writing, the asset is trading around $3900. Over the past 24 hours, its price has fallen by 2.2%.

Previously, institutional investors withdrew 10% of Ethereum’s supply from exchanges. QCP warned of the risk of the cryptocurrency falling to $3300.