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For Level 2, I believe you need a minimum account balance of $25k and you need to make above a certain number of trades per year or month. They may also require a certain number of years experience in trading stocks.
You may have answered (incorrectly) by checking that you average fewer trades than what is required. You could try calling Etrade and asking them what the holdup is. They may be willing to tell you on the phone.
My husband has an etrade account and has just been diagnosed by the VA as an addicted gambler. He has spent over $100,000 in various way and has been spending it from the retirement account. We are not wealthy people. How can I stop this in etrade?