Ethereum (ETH) Slips Below $2.3K After Rejection at $2.5K Supply Zone

Rejection at the $2.5K Supply Zone

Ethereum (ETH) price momentum faded this week after a rebound from the $2.2K demand mark ran directly into the $2.5K supply zone, the exact area where the asset's multi-month ascending channel gave way in October. The rejection left the token retreating below $2.4K, and at the time of writing it changes hands near $2,267, roughly 7% lower over the past 24 hours. The setup now pits improving short-term momentum against an unrepaired daily breakdown, a standoff between the two halves of the market's support and resistance map. That gap between timeframes is the crux for Ethereum (ETH) traders: the lower frames improved this week, yet nothing on the daily chart confirms that October's damage has been fixed.

On the daily chart, ETH spent June through mid-October inside an ascending channel that carried the price from approximately $1.5K toward $2.8K. The October decline pushed the market through the channel's lower boundary, and the former support area has since flipped into resistance. The latest rebound stalled inside the zone around $2.5K, precisely where the channel was lost, which is why that region now defines the bull case. A daily close back above $2.5K would be the first indication that October's breakdown was a deviation, not a structural shift, reopening the path toward the $2.8K swing high and the supply area above it. In other words, $2.5K decides whether this week's bounce was the start of a recovery or a pause inside a downtrend. Until then, rallies into the zone are likely to keep meeting sellers who bought higher and want to exit near breakeven.

The 4-Hour Chart Looks More Constructive

The shorter timeframe tells a different story. Since the early-October high near $2.8K, Ethereum (ETH) had been trading inside a descending channel marked by lower highs and lower lows. The $2.2K demand zone absorbed repeated tests in recent sessions before an impulsive advance broke above the channel's upper trendline earlier this week. That breakout, however, ran straight into the $2.5K supply zone, and price is now retreating below $2.4K. A successful retest of the broken trendline near $2.3K would support the breakout scenario and set up another attempt at $2.5K, and clearing that barrier would put the $2.7K supply zone in focus. A return inside the descending channel, by contrast, would invalidate the breakout and frame the move as a relief rally within the broader downtrend, with $2.2K likely to be tested again; losing that floor would align the short-term structure with the bearish daily path.

On the downside, the 0.5 Fibonacci retracement of the June-September rally near $2.16K has held through the late-October dip so far. A daily candle close below it would expose the 0.618 level at $2K, followed by the $1.9K demand zone, which marks the July-August consolidation that came before the sharp August rally and overlaps the 0.702 retracement, forming a notable confluence of demand.

The US demand picture adds a caution flag. The Coinbase Premium Index, which tracks how far Ethereum (ETH) trades above or below its Binance USDT price when quoted on Coinbase's USD pair, stayed largely positive through the 2025 bull market rally toward roughly $4.8K but has been predominantly negative since late 2025. The metric recently plunged to about -0.21, among its deepest readings on record, before recovering to -0.09 with the latest price rebound. That improvement suggests US selling pressure is easing, though a reading still below zero does not by itself signal the return of meaningful American buying. Only a sustained return to positive territory would add conviction to a $2.5K reclaim; renewed deterioration would raise the risk of the daily channel breakdown extending toward $2K, the market's most closely watched psychological floor.

The strongest level beneath the market, per COINOTAG's composite scoring, sits at $2,156.68, rated 86/100 from the convergence of the swing low, the 200-day moving average and VWAP, effectively stacking on the $2.16K Fibonacci floor described above. The heaviest resistance, $2,453.24 at 90/100, lies below the $2.5K zone, so ETH would need to clear both layers to confirm this week's breakout. The full map of scored levels sits on our Ethereum technical analysis page. Positioning leans one way: perpetual funding prints just 0.0002% and 76.8% of trading accounts hold longs, a crowded skew if support gives way. A daily close under $2,156.68 would put the $2K psychological mark directly in play.