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.

[](https://cryptopotato.com/wp-content/uploads/2026/10/ETH-D-1-1-scaled.jpg)

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.

On the downside, a renewed loss of the trendline and a 4-hour close beneath $2.3K would invalidate the recent recovery and expose the asset to further selling pressure. The structure therefore leaves ETH at a short-term inflection point, with the reaction around $2.4K likely to shape the next move.

[](https://cryptopotato.com/wp-content/uploads/2026/10/ETH-4H-1-1-scaled.jpg)

On-Chain Analysis

The Coinbase Premium Index on CryptoQuant measures the percentage difference between the ETH price on Coinbase Pro, which is widely used by US investors, and on Binance. Positive readings indicate stronger buying pressure from US-based participants, while negative readings suggest relatively weaker demand on Coinbase.

The chart shows that the premium remained largely positive between August and October 2025, when ETH traded above $4K. The metric then turned persistently negative from November 2025 onward, a period that coincided with the decline toward the $2K region in early 2026 and, later, the drop to approximately $1.5K in June. Short-lived positive phases in March and April 2026 accompanied only temporary recoveries.

More recently, the index briefly returned to slightly positive territory in late August and early September during the rally toward $2.8K. Since then, however, the readings have moved back into negative territory and recently fell to approximately -0.1, the lowest level since the summer.

This does not necessarily mean the recent bounce will fail, as price can recover through offshore demand or derivatives activity. However, a sustained negative premium indicates that US spot buyers are not currently leading the market. If the premium remains weak while ETH struggles to reclaim $2.6K, the $2.4K support zone could come under pressure again, whereas a recovery back toward zero would strengthen the case for a durable base.

[](https://cryptopotato.com/wp-content/uploads/2026/10/Ethereum-Coinbase-Premium-Index-1-scaled.jpg)