Ethereum (ETH) was trading around $1,747 based on crypto.news market data, with price action remaining close to a major historical support zone between $1,600 and $1,700.
This level has repeatedly acted as a key support area during previous major Ethereum corrections.
A recent weekly chart shared by analyst CryptoPoseidon shows ETH once again testing this support after a sharp decline from its 2025 peak near $4,800. So far, Ethereum continues to form lower highs and lower lows, signaling that the broader bearish trend has not yet reversed.
Weekly RSI Enters Historical Bottom Zone
CryptoPoseidon noted that Ethereum’s weekly Relative Strength Index (RSI) has dropped to its lowest level since the asset was first launched. According to him, ETH has previously formed market bottoms four different times when RSI reached similar levels.
Current chart data shows ETH’s weekly RSI sitting around the 30 to 40 range, an area that marked previous cycle bottoms during the bear markets in 2018, 2022, and early 2025.
Potential Bullish Divergence Appears
The chart also suggests Ethereum could be forming a bullish RSI divergence, a condition where price continues testing support or making lower lows while RSI stops falling further.
This type of signal often indicates selling pressure is weakening even though the asset remains in a downtrend.
Earlier reports from crypto.news showed ETH had previously formed a bearish RSI divergence near $2,400, warning that bullish momentum was fading before the latest correction began.
Whale Activity Drops Sharply
Meanwhile, analyst Ali Charts reported that whale activity on the Ethereum network has fallen by roughly 86.6%, dropping from 2,194 large transactions on June 5 to just 294 transactions currently.
A decline in whale transactions usually suggests large investors are waiting for clearer market direction or reducing activity amid short-term volatility.
This weakens the bullish case for Ethereum. Typically, a strong market bottom is supported by rising whale activity, stronger trading volume, and increasing spot market demand.
Futures Sentiment Starts Improving
At the same time, CoinGlass funding rate data shows Ethereum futures sentiment has started improving after previously remaining under bearish pressure.
Funding rates have turned slightly positive again, signaling that traders are slowly returning to long positions. This could support a potential rebound if ETH manages to hold its current support zone.
However, funding data alone is not enough to confirm a full trend reversal.
Ethereum still needs to defend the $1,600 to $1,700 support range and reclaim higher resistance levels before bullish signals become stronger.
Overall, Ethereum’s current setup remains mixed. ETH is showing a rare historical bottom signal through its weekly RSI, funding sentiment is improving, and a potential bullish divergence is forming.
On the other hand, price action remains bearish while whale activity has declined significantly. If ETH can hold above current support levels, a rebound remains possible. However, a breakdown below $1,600 could invalidate the historical bottom pattern.
