Ethereum's recent price movement has been marked by a significant rejection and decline, following a brief breakout above the 100-day moving average. The cryptocurrency experienced a 13.3% drop, breaking below the critical 100-day MA support region, indicating a potential bull trap. Despite this, Ethereum has found support around the 200-day moving average at $3.2K, a crucial defense for buyers.

A closer examination of Ethereum's daily chart reveals a brief period of consolidation after breaking out above the 100-day moving average, followed by a significant rejection. This rejection has led to a break below the 100-day MA support region, suggesting a bearish sign if the price breaks below the 200-day MA. The 4-hour chart shows increased selling pressure near the prior major pivot of $3.5K, leading to a break below the short-term ascending wedge's lower boundary.

Ethereum's price action is currently oscillating between the dynamic support of the descending trendline and the critical resistance region at $3.3K. A break above $3.3K could indicate a return of optimism to the market, while a failure to reclaim this region may lead to a bearish retracement toward the $2.8K mark. Understanding the potential targets for a bullish trend is essential for predicting future price movements.

The accompanying chart identifies potential liquidation zones within Ethereum's price action, offering insights for mid-term strategies. Notable liquidity is resting above the prior major swing high of $3.5K and near the $4K mark, indicating that short positions in the perpetual markets have driven the recent bearish developments. These price regions potentially serve as primary targets for smart money in the mid-term.

Ethereum's upcoming trajectory heavily depends on its price action near the substantial 200-day MA. A break below this critical threshold would indicate a notable bearish sign, paving the way for a bearish retracement toward the multi-month wedge's lower boundary at $2.8K. Conversely, a break above the $3.3K region could lead to a bullish trend, making it essential for traders to monitor Ethereum's price movement closely.