From CryptoPotato · By Shayan Markets
Ethereum is attempting to recover after a sharp sweep below the $2.4K support region, now trading around $2.45K. The rebound has brought the price back to the upper boundary of a key demand zone, but the market still needs to show that buyers can hold this area before the broader recovery can be considered back on track.
Meanwhile, the Coinbase Premium Index has dropped to its deepest negative reading in months, suggesting that US-based demand remains weak despite the latest bounce.
Ethereum Price Analysis: The Daily Chart
On the daily timeframe, Ethereum continues to trade within the ascending channel that has guided its recovery from the June lows near $1.5K. The sharp August rally carried ETH from the $1.9K region toward $2.5K, then advanced into the $2.8K supply zone in late September. Sellers defended that region, and the subsequent decline pushed the price below the channel’s midpoint.
The correction has now brought ETH into the highlighted $2.4K demand zone, which overlaps with the channel’s rising lower boundary. This confluence makes the area especially significant. Yesterday, the price briefly wicked below the zone toward approximately $2.3K before buyers stepped in, and the latest daily candles show a modest recovery back above $2.4K.
If buyers continue to defend this support, ETH could attempt another move toward the channel midpoint near $2.8K and would bring the $2.8K-$3K supply zone back into focus, where the September advance stalled.
Conversely, a decisive daily close below $2.3K would mean a breakdown from both the demand zone and the ascending channel, which would considerably weaken the recovery structure. In that scenario, the next major support lies at the $1.9K order block, which marks the base of the strong August rally.
ETH/USDT 4-Hour Chart
The 4-hour chart shows Ethereum trading within a broadening ascending structure since late August, marked by the orange trendlines. After the price reached the upper boundary near $2.8K in September, momentum faded, and ETH consolidated between approximately $2.6K and $2.8K before breaking down aggressively in early October.
The decline produced a series of lower highs, and the mid-October rebound stalled around $2.5K. The latest sell-off then pushed ETH below the wedge’s lower trendline and through the $2.4K demand zone, briefly reaching the $2.3K area. However, the price quickly recovered back above both the zone and the trendline, suggesting that the move may have been a liquidity sweep rather than a confirmed breakdown.
In the immediate term, holding above $2.4K would support the stabilization attempt and could open the way toward the $2.6K rebound high. Clearing that barrier would interrupt the sequence of lower highs and potentially bring the $2.7K region, where the earlier consolidation broke down, back into play.