Ethereum is trading near $2,050–$2,100 after a sharp selloff that pushed the asset toward the critical $2,000 support, with analysts warning that the danger is not over. The decline follows a break of the ascending channel that had supported ETH’s recovery since June, and a rejection from the $2,500 bearish order block in early November.
On Nov. 8 and 9, approximately $432.34 million in leveraged Ethereum positions were liquidated as ETH slid from $2,236 to $2,060. That marked the largest liquidation wave for Ethereum since Aug. 19, when $1.02 billion in short positions were wiped out in a single day. The current price sits just above $2,100, with traders watching the $2,000 round-number support as a potential psychological line in the sand.
The daily chart shows Ethereum lost the lower boundary of its ascending channel in late October after failing to clear the $2,800–$3,000 supply zone. The early-November rebound retested the $2,500 area as resistance and was sharply rejected, confirming a bearish structure shift. The immediate focus is the $2,000 demand zone, which preceded the sharp August rally. Holding this area could allow ETH to stabilize and attempt a recovery toward $2,500, where the broken channel boundary and prior rejection create a strong resistance confluence. A decisive daily close below $1,900, however, would leave little visible support until the $1,500 June bear market lows.
On the 4-hour chart, ETH has been trading inside a descending channel since early October. The Nov. 4 rally reached near $2,450, just below the $2,500 supply zone, before sellers pushed the price through the $2,200 support and briefly below the channel’s lower boundary to approximately $2,000. A modest rebound to around $2,050 suggests some buyers are responding, but no clear reversal signal has emerged. A sustained recovery could trigger a relief bounce toward $2,200, now a potential resistance, while a confirmed move below the lower boundary would expose the $2,000–$1,900 demand zone.
Weak US demand adds to the pressure. The Coinbase Premium Index on CryptoQuant, which measures the ETH price gap between Coinbase and Binance, remains negative and recently printed around -0.12. The index was mostly positive during the 2025 rally toward $4,800 and turned persistently negative through the subsequent decline. A move back above zero would signal returning US buying interest, which is currently absent.
Open interest data also points to deleveraging rather than fresh bearish bets. The 30-day rolling Ethereum Open Interest Z-Score dropped to -2.87, according to analyst Arab Chain using Binance data. Open interest stood at $5.236 billion, compared with a 30-day average of $5.850 billion and a standard deviation of $213.77 million—about 2.87 standard deviations below the mean. Falling open interest alongside weaker prices often reflects closed positions through liquidations or manual exits, not necessarily the opening of large short positions.
Technical indicators remain bearish. ETH lost the swing point at $2,358, and the $2,400 area was retested as resistance. The On-Balance Volume indicator has been flat to slowly declining since early October, while the MACD shows strong bearish momentum. Below the $2,000 round-number support, the $1,840–$1,950 zone is the next demand area where ETH consolidated in July and August. For now, the market remains fragile: a break below $2,000 could accelerate downside, while a hold may offer only a short-term pause for buyers.
Adding context to the debate, Ethereum co-founder Vitalik Buterin argued that Ethereum as a store of value makes more sense to focus on than ETH as a fee-burning token. While separate from price action, that view adds to how holders might evaluate the asset during this critical support test.
