Ethereum slid to approximately $2K before bouncing to around $2.05K, after losing the ascending channel that had supported its recovery since June. The Coinbase Premium Index remains negative, which points to weak US demand, and the $2K demand zone is a key area that could decide whether the correction stabilizes.
Ethereum extended its decline toward the $2K mark after losing the ascending channel that had supported its recovery since June. ETH trades around $2.05K and is approaching a key demand zone that could decide whether the correction stabilizes or develops into a deeper move.
Sellers regain control after the November 4 rally
On the daily chart, Ethereum broke the lower boundary of its ascending channel in late October after failing to clear the $2.8K-$3K supply zone. The early-November rebound retested the $2.5K bearish order block and was sharply rejected, which turned former support into resistance.
On the 4-hour chart, the November 4 rally reached the upper boundary near $2.45K, just beneath the $2.5K supply zone. Sellers then regained control and drove the price through the $2.2K support level. ETH briefly slipped below the channel's lower boundary to approximately $2K before bouncing back toward $2.05K.
What the $2K zone decides
The $2K demand zone marks the consolidation range that preceded the sharp August rally. Holding it could allow ETH to stabilize and attempt a recovery toward $2.5K. A decisive daily close below $1.9K, however, would leave little visible support until the $1.5K June lows.
The modest rebound suggests some buyers are responding, but the price remains pinned near the lower trendline without any clear sign of reversal. A sustained recovery could trigger a relief bounce toward $2.2K, which sellers could now defend as resistance.
US demand stays weak
The Coinbase Premium Index on CryptoQuant stands at approximately -0.12, after printing readings near -0.2 in recent weeks. Negative values suggest weaker demand or heavier selling on Coinbase relative to the broader market.
A negative premium does not by itself confirm further downside, because it reflects relative demand rather than absolute selling volume. Still, a move back above zero would be a stronger sign that demand is returning alongside any recovery attempt.
Source: CryptoPotato
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