TLDR:
- Ethereum has dropped 20% in two weeks, testing the $3,800–$3,900 support zone.
- ETH RSI is at its lowest since April, when it rallied 134% within two months.
- Over 2.1M ETH are queued for withdrawal with a 37-day average wait time.
- 198k ETH remain in line to stake, suggesting ongoing network participation despite low yields.
Ethereum has had one of its toughest two-week stretches this quarter. Its price slid 20%, wiping out weeks of slow gains. Yet some traders see this as a window rather than a warning.
The oversold RSI level is flashing a setup not seen since April. Staking withdrawals are also piling up, raising questions about ETH supply. The next few weeks could decide whether Ethereum holds its $3,800 line or breaks lower.
Ethereum Price and RSI Signal
Crypto analyst Lark Davis pointed out Ethereum’s RSI has dropped into oversold territory, its lowest level since April. Back then, ETH rallied more than 100% in the following two months. Traders now watch for a repeat if the market turns bullish into Q4.
Ethereum has dropped 20% in two weeks$ETH RSI is in its most oversold territory since the April lows.
The last time $ETH was this oversold, it rallied 134% in two months.
It has bounced nicely off the $3,800-$3,900 level, which if it wants to remain bullish, must hold this… pic.twitter.com/1L3AAjBZGm
— Lark Davis (@TheCryptoLark) September 27, 2025
CoinGecko data shows ETH trading at $4,005, up 0.33% in the last 24 hours but still down over 10% in a week. The $3,800 to $3,900 range has acted as a key support zone over recent sessions. Holding this level is seen as critical for any recovery attempt.
RSI readings this low often attract buyers looking for discounted entries. The timing aligns with growing speculation that crypto markets may see a shift in sentiment later this year.
Staking Queue Hits 2.1 Million ETH
On-chain data shows a mounting queue of ETH waiting to exit staking. MartyParty highlighted that 2.15 million ETH are currently lined up to withdraw. He also warned of low yields on older staking protocols and the risk of long wait times.
Ethereum staking queue. Remember to unstake Ethereum requires waiting in a queue for months. Here is the queue today. 2.15m $ETH waiting to exit 198k waiting to enter. See for yourselves->https://t.co/yk8vFmexTh
Beware of staking on older protocols like Ethereum and Cardano,… pic.twitter.com/I1w40AnXLY
— MartyParty (@martypartymusic) September 27, 2025
Crypto Patel updated that the average wait to unstake is now 37 days. This backlog locks up billions in ETH that will eventually hit the market once processed. Some traders believe this temporary supply restriction could ease sell pressure in the near term.
At the same time, nearly 198,000 ETH still wait to enter staking, reflecting continued participation despite low rewards. The balance between staking inflows and withdrawals could influence ETH liquidity heading into Q4.
