Ethereum has continued its downward trajectory, approaching the $2K threshold, following the breach of the ascending channel that had underpinned its recovery since June. Trading around $2.05K, ETH is now nearing a crucial demand zone that may determine if the correction stabilises or evolves into a more significant downturn. Meanwhile, the Coinbase Premium Index remains firmly negative, indicating a lack of robust demand from investors based in the United States.
On the daily timeframe, Ethereum breached the lower boundary of its ascending channel in late October after encountering resistance in the $2.8K-$3K supply zone. The early-November rebound retested the $2.5K bearish order block and was sharply rejected, turning the former support into resistance and confirming the shift in structure. The immediate focus is the 2K demand zone, which marks the consolidation range that preceded the sharp August rally.
Maintaining this level may enable ETH to stabilise and pursue a recovery toward $2.5K, where the fractured channel boundary and recent rejection form a notable resistance confluence. Reclaiming it would be necessary before the 2.8K-3K supply zone re-emerges as a focal point. Conversely, a decisive daily close below $1.9K would eliminate the foundation of the summer rally and reveal minimal support until the $1.5K June bear market lows.
