According to BlockBeats market data on June 6, the daily Relative Strength Index (RSI) for the ETH/USDT pair on Binance plunged to 13.29, marking the lowest reading ever recorded for this indicator. This level even surpasses the extreme oversold conditions seen during the chain-wide liquidation cascade in June 2022. Simultaneously, BTC/USDT daily RSI landed at 15.41 — not only far below the traditional 30 threshold, but also deeper than the 16.15 recorded during the “1011 crash”, matching the panic of the March 12, 2020 crash, and second only to the November 2018 bear market trough.
Developed by technical analyst Welles Wilder, the RSI measures the speed and magnitude of price moves by comparing average up-days to average down-days over a given period. A reading below 30 typically signals oversold territory. Daily RSI values this extreme appear rarely, as the longer timeframe smooths out noise, so both Ethereum and Bitcoin dipping into such rare lows indicates that near-term selling pressure has reached an irrational extreme.
Looking back, Bitcoin’s current oversold reading is closing in on the depths of the November 2018 crypto winter, while Ethereum’s is even more extreme than the on-chain liquidation crisis of two years ago. With the two largest cryptocurrencies simultaneously showing record oversold readings, markets are left to wonder how the subsequent recovery will unfold.