A rare technical signal has re-emerged in the crypto market, possibly indicating a significant shift in market dynamics towards altcoins versus Ethereum.
What Does RSI Mean?
The Relative Strength Index (RSI) is a popular momentum indicator showing that the RSI value on the 2-week chart for altcoins versus ETH has recently dropped below 35. This condition is a sign of extreme oversold market conditions and has historically been associated with strong rebounds in altcoin strength. The RSI has only dropped below 35 twice in crypto history, and both times led to significant altcoin outperformance over Ethereum lasting more than 100 days.
Could This Signal a New Altseason?
If historical trends hold, the current RSI drop may indicate a macro bottom for altcoins compared to Ethereum. This suggests that altcoins may soon enter a phase of dominance over ETH, potentially lasting until December 2025. Crypto investors often look for moments like these—rare signals backed by strong historical patterns.
Historical Perspective and Future Projections
Objective data show that both previous dips below 35 on the 2-week RSI led to prolonged rallies in major altcoins. While past results are not guaranteed, the consistency of historical outcomes may provide bullish traders with reasons for optimism. The chart tells a story, and that story might mark the beginning of a new altseason.
The analysis of current market data indicates potential significant shifts in cryptocurrency dynamics, which could present interesting opportunities for investors by mid-2025.
