Ethereum has declined to approximately $2.2K following a further wave of selling that has extended the drop from the previous highs of $2.8K. With ETH now trading within a critical demand zone that coincides with the lower boundary of its short-term descending channel, the present area may determine whether the correction stabilises or intensifies toward lower support. Meanwhile, the Coinbase Premium Index has fallen to its lowest level in over a year, indicating significantly subdued demand from US investors. The daily chart of Ethereum indicates that the ascending channel, which facilitated the price increase from the June lows around $1.5K, has been breached. After experiencing a rejection from the $2.8K supply zone in September, ETH subsequently declined below the channel’s lower boundary and later retested it at approximately $2.5K, where sellers once more rejected the price. This unsuccessful retest indicates that the previous support level has now transformed into a resistance level.
The decline has now positioned the asset within the $2.2K-$2.3K demand zone, situated beneath the consolidation that followed August’s significant rally. Today’s candle briefly wicked toward 2.15K before recovering, indicating that buyers are responding. However, the rebound remains modest, and the region has yet to generate a compelling response. If this support holds, ETH could attempt a recovery toward $2,500. On the contrary, a valid daily close below 2.2K would expose the 1.9K order block, which is the base of the August rally and the next major demand area visible on the chart. The 4-hour chart indicates that Ethereum has been navigating a descending channel since early October, marked by a series of consistent lower highs and lower lows. The upper boundary has functioned as a dynamic resistance level, particularly evident on October 21, when the price was firmly rejected from the $2.5K zone. After several days of fluctuating between approximately $2.3K and $2.4K, ETH experienced a significant downward movement.
The sell-off momentarily drove the price down to the channel’s lower boundary close to $2.15K, prompting a response from buyers. ETH is currently consolidating at $2.24K, situated within the horizontal demand zone. This convergence of channel support and horizontal demand renders the current region especially significant for the near-term perspective. A successful defense could produce a relief bounce toward the $2.4K range highs and the channel’s upper boundary near $2.42K, and a potential breakout above it would weaken the bearish structure. On the other hand, a confirmed move beneath the lower trendline would signal that sellers have regained control, leaving the $1.9K region as the next likely target. The Coinbase Premium Index on CryptoQuant measures the price gap between ETH on Coinbase, a venue widely used by US investors, and Binance. Positive readings indicate stronger buying from US participants, while negative values suggest weaker demand or heavier selling on Coinbase relative to the broader market.
Throughout mid-2025, the index remained largely positive as ETH rallied toward $4.7K. Since November 2025, readings have predominantly remained negative, aligning with the asset’s extended downtrend. The metric briefly turned positive in September 2026 around the $2.5K-$2.6K consolidation, but it has since collapsed to approximately -0.21, which is arguably the deepest reading in the visible period, alongside the latest drop toward $2.2K. This suggests US demand has weakened sharply. Notably, a similarly extreme reading in February 2026 occurred close to a local low, so the current figure could also reflect capitulation rather than sustained selling. Either way, the index would need to recover alongside price for ETH to defend the $2.2K support and challenge the $2.5K resistance. Otherwise, the surplus of supply and lacklustre technical indicators may lead to ETH falling below the $2,000 mark in the near term.
