Check the level sensor known problem following link should help
04 Envoy Self Leveling Rear Suspension Yahoo Video Search Results
That means the air has left the shocks. The compressor may have a bad fuse or have stopped working all together. The level sensor may not be operating either.
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SOURCE: 2004 Envoy XL, the rear-end suddenly lowered dramatically
your shocks dampen the movement and up and down flow or you suspension. it is may be a bad coil spring
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