Ethereum was trading near $1,747 at press time, holding close to the $1,600 to $1,700 area that has acted as a major support zone in past drawdowns, according to crypto.news market data.
On the weekly chart, ETH is still in a clear downtrend after falling from its 2025 high near $4,800. Lower highs and lower lows remain in place. A chart shared by CryptoPoseidon shows price retesting this long-watched support range while weekly RSI has returned to levels associated with prior cycle bottoms.
Weekly RSI revisits a historic bottom area
CryptoPoseidon said Ethereum’s weekly RSI is at its lowest point since the token generation event. He added that ETH had bottomed four times in the past near similar RSI readings. The chart places RSI near the 30 to 40 zone, roughly where cycle lows formed in 2018, 2022, and early 2025.
He also wrote that ETH either bottoms here or goes to zero. The chart does not support that as a literal binary outcome. What it does show is a decision zone: downside momentum may be fading, but the reversal case still needs confirmation from price action.
Possible RSI divergence still needs price validation
The same chart suggests Ethereum may be developing a weekly bullish RSI divergence. Price is testing, or slightly breaking below, prior support while RSI is holding near or above its previous low. That setup can point to weakening bearish momentum even with spot price still under pressure.
crypto.news had earlier reported that a bearish RSI divergence near $2,400 warned of weakening momentum before the latest slide. After ETH broke below an ascending channel and lost short-term support, risk around the $1,800 area increased. A new technical signal is now forming, but it has not been confirmed.
Whale activity weakens the bullish setup
Ali Charts said whale activity on Ethereum dropped 86.6%, with large transactions falling from 2,194 on June 5 to 294 now. A decline in large transfers can indicate that major holders are waiting for a clearer market direction or stepping back from short-term volatility.
That makes the bottoming case less convincing. Strong bottoms usually gain support from more than oversold indicators alone. Traders often look for stronger whale participation, improving spot demand, and better volume at the same time. For now, the RSI signal points to possible seller exhaustion, while large-holder data is not offering broad confirmation.
Funding improves, but sentiment remains fragile
CoinGlass-based funding data shows ETH futures sentiment has recovered from recent bearish extremes. Funding rates have turned slightly positive after a stretch of negative readings, a sign that long demand is starting to return. If support holds, that shift could help price stabilize.
Still, funding on its own is not enough to change the broader structure. Ethereum needs to defend the $1,600 to $1,700 range and reclaim higher levels before traders can treat the weekly RSI divergence as confirmed. A weekly close above support would keep the rebound case open. A break below $1,600 would weaken the historical bottom pattern significantly.