Ethereum has slipped below a key technical boundary after failing to continue its recovery through the $2.8K region. Trading around $2.31K, ETH has broken beneath the lower trendline of its daily ascending channel, putting pressure on the nearby support zone at $2.3K. Meanwhile, the Taker Buy Sell Ratio points to significant selling aggression in the futures market, reinforcing the cautious short-term picture.

Ethereum Price Analysis: The Daily Chart

On the daily timeframe, Ethereum had been advancing within a clear ascending channel since the late-June low near $1.5K. The rejection from the $2.8K supply zone in September started a steady decline, and the price has now closed below the channel’s lower boundary around $2.4K. This breakdown suggests that the structure supporting the recovery has weakened considerably.

ETH is also losing the small $2.3K–$2.35K support area, leaving the 0.5 Fibonacci retracement near $2.16K as the next notable reference. Below it, the 0.618 level around $2K and the $1.9K order block stand out. The latter overlaps with the 0.702 retracement and marks the base of the sharp August rally, making it a major demand confluence.

On the upside, buyers would first need to reclaim the broken channel boundary and the marked $2.5K short-term supply zone. A recovery above this region would invalidate the breakdown and bring the $2.8K area back into focus. Until then, the daily market structure favors sellers.

ETH/USDT 4-Hour Chart

The 4-hour chart shows Ethereum trading within a descending channel since the early-October peak near $2.77K, defined by consistent lower highs and lower lows. The latest relief rally was rejected at the upper boundary near the $2.5K zone, after which sellers resumed control and pushed the price back toward the lows.

ETH is now hovering just below the $2.35K range, with a recent wick toward approximately $2.28K. The more significant support is the $2.25K demand zone, the bullish order block that formed directly after the August breakout. This region also aligns with the channel’s lower trendline, creating a meaningful confluence for buyers to defend.

A successful reaction there could produce a relief bounce toward $2.35K and potentially the upper boundary of the falling channel near $2.45K. Conversely, a decisive breakdown below $2.25K would leave little structural support until the $1.9K area, raising the risk of an accelerated decline. The short-term pattern continues to favor caution unless the channel’s upper trendline is broken to the upside.

On-Chain Analysis

The Taker Buy Sell Ratio on CryptoQuant measures the volume of aggressive market buy orders relative to aggressive market sell orders across derivatives exchanges. Readings above 1 indicate that buyers are dominating, while readings below 1 suggest that sellers are executing more aggressively. The chart tracks the metric’s 30-day moving average to filter out daily noise.

The indicator peaked just below 1.02 in July, when Ethereum was building its base below $2K, but has trended steadily lower since. It slipped below the neutral level of 1 in September and now sits around 0.973, its lowest reading since the June sell-off. Similar deep negative phases in late 2025 and mid-2026 coincided with extended price declines.

However, depressed taker readings can also precede local bottoms once selling pressure becomes exhausted, as seen after the June lows. The metric alone does not confirm further downside. Still, with sellers clearly dominating order flow, the $2.25K 4-hour demand zone becomes critical, and a recovery in the ratio toward 1 would be needed to support a meaningful rebound.

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