Ethereum breaks daily ascending channel, tests $2.3K support as $2K approaches

Trading near $2.31K, ETH has fallen below the lower trendline of its daily ascending channel, placing pressure on the support level at $2.3K. Furthermore, the Taker Buy Sell Ratio indicates substantial selling aggression within the futures market, reinforcing a cautious near-term outlook.

On the daily chart, Ethereum had been advancing within a defined ascending channel since its late-June low near $1.5K. A rejection from the $2.8K supply zone in September initiated a consistent drop, and the price has since closed below the channel’s lower boundary around $2.4K. This structural breakdown suggests a considerable weakening of the recovery's underpinning.

ETH is currently losing the minor support range between $2.3K and $2.35K, making the 0.5 Fibonacci retracement near $2.16K the next significant reference point. Below that, the 0.618 level near $2K and the $1.9K order block are notable. The latter overlaps with the 0.702 retracement and marks the base of the sharp August rally, establishing a major demand confluence.

For upward movement, participants must first reclaim the broken channel boundary and the designated $2.5K short-term supply zone. A rebound above this region would invalidate the downward move and bring the $2.8K area back into focus. Until such an event occurs, the daily market structure favors sellers.

The 4-hour chart shows Ethereum operating within a descending channel since the early-October peak near $2.77K, characterized by successive lower highs and lower lows. The most recent relief rally encountered rejection at the upper boundary near the $2.5K zone, after which sellers regained control and pushed the price toward the lows.

ETH is presently hovering just under the $2.35K range, with a recent wick reaching approximately $2.28K. The more substantial support lies in the $2.25K demand zone, a bullish order block formed directly after the August breakout. This area also aligns with the channel’s lower trendline, creating a significant confluence for buyers to defend.

Conversely, a definitive decline beneath $2.25K would leave minimal structural support until the $1.9K area, increasing the probability of an accelerated downturn. The short-term pattern continues to advise prudence unless the channel’s upper trendline is decisively broken upwards.

The Taker Buy Sell Ratio, which measures aggressive market buy volume versus aggressive market sell volume on derivatives exchanges, tracks this metric against a 30-day moving average to mitigate daily volatility. After peaking just below 1.02 in July while Ethereum was consolidating below $2K, the ratio has trended downward since. It dropped below the neutral level of 1 in September and currently rests near 0.973, representing its lowest reading since the June sell-off.

Market participants should note that while similar deep negative phases in late 2025 and mid-2026 coincided with extended price declines, depressed taker readings can also precede local bottoms once selling pressure is exhausted, as observed after the June lows. Nevertheless, given that sellers are clearly dominating order flow, the $2.25K 4-hour demand zone is critical, and a ratio recovery toward 1 would be necessary to support a meaningful rebound.

The current market dynamics suggest that institutional positioning must account for the confluence of technical breakdown and bearish on-chain flow. This indicates that while potential support exists at lower levels, the prevailing structure leans toward downside pressure until significant upward momentum is established.

Why it matters

This technical breakdown suggests weakened structural support for Ethereum's recent recovery, which is relevant for assessing risk in DeFi and L2 ecosystems. Investors should monitor the $2.25K demand zone closely, as its defense could signal a potential shift in market sentiment.