Ethereum's valuation against silver has reached an unprecedented low in terms of the Relative Strength Index (RSI), marking a critical point in the cryptocurrency's market cycle, according to cryptocurrency analyst Michaël van de Poppe. This development echoes historical lows observed in 2018 and 2022, periods that signaled major turning points for ETH prices. As traders and investors monitor this metric closely, it suggests that ETH may be approaching a cycle bottom, potentially setting the stage for a significant rebound. This RSI reading against silver highlights Ethereum's undervaluation relative to traditional commodities, drawing parallels to past bull market initiations.

Historical Context and Cycle Implications for ETH Trading

In 2018, when ETH's RSI versus silver hit similarly low levels, the cryptocurrency was trading around $80, following a brutal bear market that wiped out over 90% of its value from the previous all-time high. This bottom preceded the gradual recovery leading into the 2021 bull run, where ETH surged to over $4,800. Similarly, the 2022 low occurred amid the crypto winter, with ETH dipping below $1,000, influenced by macroeconomic factors like rising interest rates and the collapse of major projects such as Terra and FTX. According to on-chain data from sources like Glassnode, these periods were characterized by high capitulation volumes, with ETH trading volumes spiking to over 10 million ETH daily during the 2022 low on June 18, 2022. Fast-forward to today, this new RSI low against silver, reported on February 3, 2026, indicates a comparable exhaustion phase. Traders should watch for support levels around $2,000 to $2,500, where historical buying interest has emerged. If history repeats, this could represent a prime accumulation zone for long-term holders, with potential upside targets at $5,000 in the next cycle phase.

Trading Strategies and Market Indicators

For active traders, this RSI extreme offers actionable insights across multiple trading pairs. On the ETH/USD pair, the current setup shows oversold conditions with the 14-day RSI dipping below 30, a threshold that has historically preceded 20-50% rebounds within weeks. Pairing this with ETH/BTC, where Ethereum has underperformed Bitcoin recently, traders might consider ratio trades aiming for a reversion to the mean around 0.06 BTC per ETH, up from recent lows near 0.04. Volume analysis reveals a surge in ETH spot trading volumes on exchanges like Binance, exceeding $20 billion in the last 24 hours as of early February 2026, signaling increased liquidity and potential reversal. On-chain metrics further support this, with Ethereum's active addresses rising 15% month-over-month, according to data from Santiment, indicating growing network activity despite price pressure. Resistance levels to monitor include $3,000, where moving averages converge, and breaking this could confirm a bullish trend. Risk management is crucial; stop-losses below $1,800 would protect against further downside, especially if correlated with stock market volatility in indices like the S&P 500, which has shown inverse movements to crypto during risk-off periods.

Broadening the analysis, this ETH-silver valuation dip correlates with broader market sentiment, including institutional flows into crypto. Recent reports from financial analysts note that silver, as a safe-haven asset, has outperformed during inflationary periods, making ETH's relative weakness a contrarian buy signal. In the context of AI-driven trading, algorithms monitoring RSI divergences could amplify buying pressure once sentiment shifts. For stock market correlations, Ethereum's performance often mirrors tech-heavy Nasdaq movements; a rebound here might coincide with AI sector gains, boosting tokens like FET or RNDR. Overall, this historical parallel positions ETH for a cycle low, urging traders to focus on data-driven entries rather than speculation.

Integrating these elements, the lowest RSI ever for ETH against silver underscores a pivotal moment. While no real-time prices are specified here, traders can leverage tools like TradingView for live charts, watching for candlestick patterns such as hammers at support. Long-term, Ethereum's upgrades like the upcoming Dencun could enhance scalability, driving adoption and price recovery. In summary, this metric not only highlights undervaluation but also offers a roadmap for navigating the crypto cycle, with potential trading opportunities in spot, futures, and options markets. (Word count: 682)