Ethereum Price Analysis: ETH Needs to Reclaim These Levels to Reverse Bearish Momentum

Ethereum is struggling to regain momentum after a failed breakout attempt earlier this week sent the price back towards $2.2K. With ETH now trading around $2.25K, buyers are defending a near-term support level that could decide whether the market stabilizes or extends its correction. At the same time, network activity between user wallets has fallen sharply from its mid-2026 highs, offering few signs of renewed demand.

Ethereum Price Analysis: The Daily Chart

Ethereum’s daily chart shows the asset moving below the ascending channel that sent the price higher from June lows near $1.5k. After reaching nearly $2.8k in late September, ETH declined to the midpoint of the channel and eventually lost its lower boundary in late October. This indicates a clear deterioration of the structure in the medium term.

The ensuing bounce retested the $2.5k supply zone, which now straddles the broken lower trendline, but sellers rejected this move. This reaction shows that this former support has turned into resistance. ETH is now holding the $2.2K support level, which marked the late October low, and buyers would first need to reclaim $2.5K to restore the bullish scenario and bring back the $2.8K supply zone to $3K.

Conversely, a decisive daily close below $2.2k would confirm the channel breakout and expose the $1.85k demand zone, the consolidation zone that preceded the strong August rally. Below, the $1.5k region remains the main bottom, as it forms the basis of the entire recovery that began in June.

The 4-hour chart shows that ETH has been trading in a descending channel since early October, with a series of lower highs and lower lows. Earlier this week, the asset briefly broke above the upper boundary of the channel and rebounded towards $2.5k, but the move was quickly reversed by strong selling inside the structure. This false breakout trapped late buyers and reinforced the short-term bearish outlook.

ETH is now consolidating just above the $2.2k demand zone, which has already absorbed two sell-offs in recent weeks. If buyers continue to defend it, a relief bounce towards the upper boundary of the channel, around $2.3k, could follow. Reclaiming this trendline and then $2.5K would be needed to invalidate the failed breakout and target the $2.7K order block.

On the other hand, a break below $2.2k would likely push the price towards the lower boundary of the channel near $2k. Repeated tests of this support increase the risk of failure, and the short-term structure continues to favor sellers unless the upper trendline is decisively broken to the upside.

The Transactions Between EOA metric on CryptoQuant tracks the number of transfers between external accounts, which are wallets controlled by private keys rather than smart contracts and exchanges. Its 30-day exponential moving average serves as an indicator for direct peer-to-peer network usage, with rising values generally reflecting higher user activity.

The metric grew steadily, from around 400,000 in 2024 to around 600,000 at the end of 2025, before climbing to 1.3 million in the first half of 2026. This expansion notably occurred as ETH fell towards $1.5k, showing that activity and price do not always move in the same direction. This also showed a massive change of hands for ETH as prices were forming. Since August, the measure has collapsed to around 560,000, close to its lowest levels last year, and is only now stabilizing.

This reading should be interpreted with caution, as transaction counts can be inflated or deflated by low-value automated transfers and fee conditions, and does not directly measure buying demand. Nonetheless, the sharp contraction in portfolio activity, combined with the loss of the daily channel, suggests that the market lacks a strong catalyst. This leaves the $2.2k support level as a key line for buyers to defend.