Ethereum price analysis (Bullish) — 3997.22 USDT (-4.41% 24h)

ETH is showing extreme oversold conditions with RSI at 13.96, well below the traditional 30 oversold threshold. While the price has dropped 4.4% to $3,997, trading below both the 20-day SMA ($4,121) and 50-day SMA ($4,155), the severely depressed RSI suggests a potential reversal opportunity. Volume remains robust at over $2 billion, indicating sustained market interest despite the downturn. The current volatility reading of 2.17% presents favorable risk-reward conditions for contrarian positions. Traders should consider scaling into long positions with tight stops below $3,950, targeting initial resistance at the 20-day SMA. The extreme RSI reading historically precedes significant bounces in ETH, though confirmation requires a break above $4,050. Risk management remains crucial given the broader market uncertainty.