- Ethereum’s weekly Stochastic RSI crossover is deeply oversold, a setup that has historically triggered major pumps.
- Is another breakout imminent?
Ethereum’s [ETH] weekly Stochastic RSI crossover in the oversold zone is a historically bullish signal, often preceding major price surges.
Over the past five years, similar setups have consistently signaled explosive Ethereum rallies.
Before ETH’s run to its all-time high of $4,869.47, four years ago, the Stochastic RSI bottomed out before a bullish crossover, triggering a breakout.
A similar setup occurred during the post-election rally, when ETH reclaimed $4K after nine months of consolidation, reinforcing the indicator’s reliability.
Source: TradingView (ETH/USDT)
Currently, ETH is 45.50% below that level, with the Stochastic RSI plunging into extreme oversold territory.
If the Stochastic RSI forms a bullish crossover in the coming days, it could signal strong breakout potential.
This possibility gains further support as the ETH/BTC pair shows signs of reversal after recently dipping to a four-year low.
This reversal suggests a potential shift in Ethereum’s relative strength against Bitcoin, adding weight to a possible recovery.
Is Ethereum on a major trend shift?
On the 1D chart, Ethereum was trading at a seven-month low, a key level that has historically attracted strong ‘buy-the-dip’ interest.
At $2,141, ETH witnessed a significant 431K outflow from Kraken, indicating potential accumulation as investors move funds off-exchange.
Source: CryptoQuant
This accumulation trend aligns with the Stochastic RSI, which is on the verge of a bullish crossover – historically a precursor to price reversals.
Meanwhile, with market sentiment still volatile, traders have liquidated $14.31 million in long positions over the past 24 hours.
If Ethereum achieves a reversal, a short squeeze could accelerate buying pressure, strengthening its breakout potential.
A shift in momentum, coupled with net flows still in the red, suggests ongoing retail accumulation.
If Ethereum holds $2K as a key support, and Bitcoin continues consolidating, ETH could gain the strength to test the $2.5K resistance in the coming days.
