Ethereum Faces Challenges Breaking Below $3K Support Region

According to CryptoPotato, Ethereum's price has been struggling to break below the key $3K support region, with selling pressure being balanced by sufficient demand, leading to sideways consolidation. However, a sudden breach of this pivotal point could trigger a cascading effect. Ethereum's trajectory has turned bearish following a significant rejection near the $4K mark, fostering a bearish sentiment among market participants. Despite this, the decline found a temporary halt upon reaching a substantial support region, encompassing the crucial $3K mark and the price range between the 0.5 ($3133) and 0.618 ($2906) Fibonacci levels. This support area aligns closely with the critical 100-day moving average, indicating significant demand near this crucial threshold. Currently, Ethereum is experiencing a sideways consolidation phase, with the price hovering around the significant $3K support region. This suggests possible accumulation underway, potentially paving the way for a robust bullish resurgence in the short term. However, an unexpected breach of this crucial support zone could trigger a cascade effect, with the next target situated at the $2.5K region and the 200-day moving average of $2.6K. Analysis of the 4-hour chart reveals that Ethereum’s multi-month decline has led to the formation of a descending wedge pattern, with the price finding support from the pattern’s lower boundary on multiple occasions. Presently, Ethereum is seeing sideways movement near the lower boundary of the wedge pattern, corresponding to the $3K support region, indicating heightened buying pressure in the market. Despite this, the cryptocurrency seems poised to continue its consolidation within the price range bounded by the $3.4K resistance region and the $3K support. Amidst Ethereum’s multi-month downtrend, initiated by its rejection near the $4K mark, investors are closely monitoring the behavior of traders in the futures market. The sudden drop below the critical $3K level resulted in the liquidation of a substantial number of long positions, triggering a cascade of sell-stop orders. However, since then, the price has been hovering around the crucial and psychological $3K support region, potentially signaling an accumulation stage in the market. Considering the potential demand near this pivotal threshold, it’s anticipated that the price will initiate a fresh, bullish move once the accumulation stage concludes. Traders should monitor price action around the $3K level, as a sudden breach below this crucial mark could potentially trigger a cascade effect towards the $2.5K threshold.