Ethereum at a Make-or-Break Moment: Is a Big Rebound Coming?

ETH/BTC is at a critical support level, with an oversold RSI hinting at a potential trend reversal. Watch for a breakout.

Historical patterns show ETH rebounds when RSI reaches oversold levels, suggesting a possible recovery for altcoins.

If Ethereum holds support, sentiment could shift, sparking renewed interest and accumulation in the altcoin market.

The altcoin market is at a defining moment. The way Ethereum performs in comparison to Bitcoin indicates weakness. Crypto researcher 𝕄𝕠𝕦𝕦𝕤𝕥𝕒 says this may be a great opportunity. Ethereum's Relative Strength Index (RSI) has fallen to oversold territory. Historically, such conditions have triggered price reversals.

ETH/BTC Facing Critical Support Levels

Ethereum, since 2021, had lost some grounds to Bitcoin: lower highs, lower lows chart paints a picture of some strong and continued bearish momentum. The ETH/BTC pair has been in a descending trendline, moving downwards, pounded by sellers. However, early in 2025, Ethereum reached a crucial multi-year support level.

Source: Moustache

This support area has previously acted as a springboard for price recoveries. Moreover, the RSI is mirroring conditions seen before major price rebounds. Hence, traders are closely watching for any signs of reversal.

Oversold RSI and Historical Patterns

During the 2017 bull cycle, ETH/BTC peaked when the RSI was overbought. This led to a sharp correction. Conversely, the current market cycle presents the opposite scenario. The RSI is now in oversold territory, suggesting that selling pressure may be overextended.

Additionally, previous occasions when ETH/BTC reached these RSI levels resulted in substantial recoveries. Historically, such conditions signal an exhaustion of selling pressure, leading to potential rebounds. Furthermore, the broader crypto market trends support this outlook. If Bitcoin consolidates, altcoins like Ethereum could regain momentum.

What Comes Next?

The technical indicators suggest Ethereum is in a strong position to rebound. Besides, the market structure and historical price action reinforce this possibility. Moreover, if ETH/BTC holds above the support zone, sentiment could shift. Investors may start accumulating, triggering a breakout from the descending trendline. Consequently, the next few weeks will be crucial for Ethereum’s trajectory.

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