Ethereum has fallen below 2,000 and entered a significant daily demand zone near 1,900-1,980. While this area could support a relief bounce, the persistent bearish structure and nearby liquidation concentrations leave further downside risk in focus. The daily chart indicates that Ethereum is continuing its downward trajectory following a breach of the ascending channel, with subsequent attempts at recovery proving unsuccessful. The recent selloff has driven the price down to $1.94K, with an intraday wick momentarily dipping below $1.90K. ETH is currently examining the $1.90K-$1.98K demand zone, a range that coincides with the consolidation that occurred prior to the significant upward movement in August. This presents a significant opportunity for buyers to engage, yet the ongoing daily candle remains unclosed, and a confirmed reversal has yet to materialise.
Price also trades below both displayed moving averages, currently around $2,150 and $2,380. Although their earlier bullish crossover remains visible, the subsequent price breakdown indicates that it has not resulted in sustained upside momentum. These averages now signify potential obstacles to recovery. A sustained daily close beneath $1.90K would weaken the demand zone and expose the August consolidation lows around $1.83K-$1.87K. The deeper marked support lies near 1.52K-1.57K. Alternatively, defending demand and reclaiming $2K could initiate a recovery, with the $2.20K-$2.29K supply zone remaining a substantial overhead barrier. The four-hour chart highlights an acceleration in selling after Ethereum broke beneath its descending channel’s lower boundary. A subsequent rebound toward the $2.04K-$2.10K zone proved unsuccessful, solidifying that region as a near-term supply before another bearish movement drove ETH below $2K.
The latest candles indicate a slight response from around $1.90K; however, buyers have not yet disrupted the ongoing trend of lower highs and lower lows. A recovery through $1.98K-$2K would indicate the initial signs of stabilisation, whereas reclaiming $2.04K-$2.10K would offer more substantial evidence that the immediate selling pressure is subsiding. Until those levels are recovered, any bounce remains susceptible to further rejection. Renewed acceptance beneath $1.90K would favour continuation toward the lower daily support references. Conversely, maintaining demand and establishing a higher low would enhance the likelihood of a more extensive recovery toward the previous consolidation range of $2.20K-$2.29K. The Binance liquidation heatmap indicates a significant accumulation of estimated liquidation exposure below the prevailing price, specifically in the range of $1.80K to $1.86K. This represents a significant downside risk should Ethereum be unable to maintain its position within the daily demand zone.
A shift toward this concentration may instigate further long liquidations and heighten volatility. However, the bright band signifies potential forced closures rather than confirmed buying support, thus reaching it would not inherently establish a bottom. Above the market, liquidation concentrations persist in the range of $1.94K-$1.98K, with additional levels observed further overhead near $2.10K-$2.20K. A sustained recovery through $2K could bring the higher bands into focus and potentially accelerate a rebound through short liquidations. Currently, the bearish structure draws focus to the ability of buyers to uphold the $1.90K level. A decisive recovery above $2K would alleviate immediate pressures, whereas another failure of support would heighten the significance of the concentrated exposure in the $1.80K-$1.86K range.
