Ethereum is trading around $2.25K after a failed breakout sent it back toward $2.2K. Buyers are defending that level, while peer-to-peer wallet activity has fallen from its mid-2026 highs.
ETH is trading around $2.25K after a failed breakout earlier this week pushed the price back toward $2.2K. Buyers are defending a short-term support level that could decide whether the market stabilizes or extends its correction.
Daily chart shows a broken channel
ETH has broken below the ascending channel that carried the price higher from the June lows near $1.5K. The price topped out close to $2.8K in late September and lost the channel's lower boundary in late October.
A rebound then retested the $2.5K supply zone, but sellers rejected the move. That reaction suggests the former support has turned into resistance.
Buyers would first need to reclaim $2.5K to restore the bullish case and bring the $2.8K-$3K supply zone back into view. A decisive daily close below $2.2K, however, would confirm the channel breakdown and expose the $1.85K demand zone.
Four-hour chart points to a fake breakout
On the 4-hour chart, ETH has traded within a descending channel since early October. Earlier this week it briefly pushed above the upper boundary and rallied toward $2.5K, but a sharp sell-off reversed the move.
The $2.2K demand zone has already absorbed two sell-offs in the past weeks. If buyers keep defending it, a relief bounce toward the upper channel boundary around $2.3K could follow. A breakdown below $2.2K would likely push the price toward the lower boundary near $2K.
Wallet activity has dropped
The Transactions Between EOA metric on CryptoQuant, which tracks transfers between externally owned accounts, surged toward 1.3M in the first half of 2026. Since August, it has collapsed to approximately 560K, close to its lowest levels of the past year, and is only now stabilizing.
That said, the source cautions that transaction counts do not directly measure buying demand. Still, the contraction in wallet activity, combined with the loss of the daily channel, suggests the market lacks a strong catalyst.
Source: CryptoPotato
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