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Ethereum’s RSI has dropped to 36%, signaling a potential buying opportunity. With multiple catalysts ahead, could ETH be ready for a major rebound?

Ethereum’s RSI Signals Potential Rebound

Ethereum’s Relative Strength Index (RSI) has fallen to 36%, a historically oversold level. This has caught the attention of crypto investors, who are eyeing potential buying opportunities.

Despite Bitcoin’s strong bullish momentum, Ethereum has underperformed for months. Analyst Marzell highlights that ETH has lagged behind Bitcoin for nearly six months.

Is #Ethereum Oversold?

With multiple catalysts on the horizon, is now the time to buy?

👇1-12) Ethereum’s Relative Strength Index (RSI) has dropped to 36%, a level where past corrections have slowed, even as Bitcoin remains in a bull market. Unlike Bitcoin’s parabolic rallies… pic.twitter.com/vUErrViU6F

— 10x Research (@10x_Research) February 11, 2025

However, Markus Thielen of 10x Research believes this high-risk, high-reward setup could present major opportunities.

#Ethereum lags #bitcoin up to 6 months pic.twitter.com/U3IzPbiW30

— Marzell (@MarzellCrypto) February 13, 2025

Ethereum: A High-Risk, High-Reward Opportunity

Thielen notes that Ethereum’s recent price fluctuations have been more unpredictable than Bitcoin’s. However, upcoming ETF approvals, network upgrades, and new trading launches could fuel a major turnaround.

The amount of shorts on $ETH has hit a new ATH.

Usually, during periods of extreme stress to the downside, shorts are peaking.

This liquidity is usually what the markets need to reverse quickly.

Great sign. pic.twitter.com/SOPA6mBJpc

— Michaël van de Poppe (@CryptoMichNL) February 10, 2025

At the moment, market sentiment is highly bearish. Analyst Michaël van de Poppe pointed out that ETH short positions are at an all-time high, reflecting negative investor sentiment.

However, Thielen argues that excessive pessimism has historically led to strong buying opportunities. He sees Ethereum’s current dip as an attractive risk/reward setup, especially with Solana losing momentum due to issues like the TRUMP meme coin collapse and slowing coin issuance on Pump.fun.

Analysts Predict a Strong Ethereum Rally

Other analysts are also bullish on Ethereum.

$ETH – #Ethereum: Q1 is usually very bullish. Hopefully March will be great. What do you think? pic.twitter.com/PESTAHNxYJ

— Crypto Caesar (@CryptoCaesarTA) February 13, 2025

🔹 Crypto Caesar highlights that Ethereum has historically performed well in the first quarter of every fourth cycle. ETH surged 353% in Q1 2017 and 167% in Q1 2021, suggesting March could be a turning point.

🔹 Crypto Rover predicts that Ethereum “is about to explode”, projecting ETH could hit $22,500 if it follows historical trends.

🔹 Some analysts even warn, “you are not bullish enough.”

With multiple catalysts ahead, could Ethereum be on the brink of a major breakout?