Ethereum (ETH) is trading at a technically decisive area, extending its corrective phase and testing a crucial support zone around the $2,000 level. This region aligns with a major prior yearly low and a historically significant demand area, which has previously acted as a strong base for accumulation. The market's reaction here indicates growing sensitivity among participants.
On the daily chart, the sharp sell-off into this zone reflects aggressive bearish momentum, but the absence of immediate continuation lower suggests selling pressure may be temporarily exhausting. From a structural perspective, this area represents a decision point: sustained acceptance below $2,000 could open the door to deeper downside, while stabilization above it increases the probability of consolidation. The most likely outcome on the daily chart is a consolidation and range-bound phase as the market digests recent losses.
On the 4-hour timeframe, price action shows a descending fluctuation while holding within the critical $2K support range. The market is compressing after an impulsive sell-off, with lower highs forming against relatively stable lows—a behavior often seen near short-term exhaustion points. This structure leaves room for a temporary bullish rebound, driven by short-covering or reactive demand. However, any potential rebound should be viewed as corrective rather than trend-reversing. The dominant scenario remains an expanded range environment, where Ethereum oscillates within a structure bounded by $2,000 and $3,000 thresholds.
Sentiment analysis reveals a deeply bearish state. The Ethereum Coinbase Premium Index is currently deeply negative and has dropped to levels last seen around the previous year's major market lows. This persistent negative premium reflects sustained selling pressure from US-based investors, with Ethereum trading at a discount on Coinbase relative to offshore exchanges. Historically, such conditions indicate weak spot demand from institutional and high-conviction buyers. Ethereum has consistently shifted into a bullish phase only after this indicator recovered and turned positive, signalling the return of strong spot demand.
In the short term, Ether is attempting a weak rebound from seven-month lows near $2,100, steadying around $2,250 after a broader selloff linked to renewed AI-related concerns in tech stocks and a volatile start to the week across crypto markets. Momentum indicators point to pronounced bearish pressure, with the MACD stretched well below the zero line and its signal line, while the RSI has eased into oversold territory. A bearish crossover between the 20 and 50-day simple moving averages further reinforces the negative bias.
If dip-buyers emerge, the first upside barrier stands at $2,400—a previous strong support turned resistance. A break above that could open the way toward the November 21 swing low at $2,620. Conversely, a decisive break below the $2,000 psychological level could accelerate declines toward the $1,530-$1,730 region. Ether is on track to end in the red for a third straight week, sitting at a critical juncture where a breakdown below $2,000 could trigger steeper losses for the largest altcoin, which is already more than 50% below its record peak.
