Ethereum’s most widely watched momentum indicator just hit a number it has never hit before. The Relative Strength Index, a measure of whether an asset is overbought or oversold, has dropped to its lowest reading in ETH’s entire trading history.
The numbers behind the panic
As of June 6, daily RSI readings on ETH fell to between 17 and 25. For context, any reading below 30 is traditionally considered oversold. Readings below 20 are rare enough that they tend to show up only during genuine market crises.
Monthly RSI indicators have also revealed historic dips, according to data reported by Coin Bureau. This isn’t just a bad day on a short timeframe. The weakness is showing up across multiple time horizons simultaneously.
ETH has been trading in the $1,569 to $1,778 range in early June, a painful distance from its August 2025 peak near $4,946. That represents a drawdown of roughly 64% from the high.
Ethereum’s market cap sat at approximately $190B at the time of the reading.
Exchange balances tell a parallel story
Ethereum’s exchange balances dropped to around 14.8 million ETH, the lowest level since 2016, a full decade ago.
What history says about oversold bounces
In early 2024, ETH bottomed near $2,150 during a period of similarly depressed momentum readings. It subsequently rallied to nearly $4,000 later that year, a recovery of roughly 86%.
The FTX crash in late 2022 produced another deeply oversold reading that eventually marked a generational bottom for multiple crypto assets. The COVID crash of March 2020 saw ETH briefly dip below $100 before embarking on a run that would eventually carry it above $4,800.
What this means for investors
For investors with a longer time horizon, the combination of a 64% drawdown from the peak, record-low RSI, and decade-low exchange balances creates a data profile that has historically rewarded patient capital. Every prior instance of RSI readings this extreme eventually resolved with prices significantly higher than the oversold low.
Investors watching for confirmation of a trend reversal should monitor whether RSI can reclaim the 30 level on daily timeframes and hold it, whether exchange balances stabilize or continue declining, and whether trading volume picks up on green candles rather than red ones.