Ethereum's price has reached a crucial support level after a brief consolidation correction stage, indicating a potential bullish reversal. However, if sellers breach this pivot, a market cascade is likely. The daily chart reveals that Ethereum has reached a pivotal support region between the 0.5 and 0.618 Fibonacci levels and the 100-day moving average, underscoring the strength of this critical level and prevailing demand.

A battle between buyers and sellers is anticipated at this pivotal price range, leading to increased market volatility and potential liquidations. If sellers overpower buyers and breach this crucial support region, a cascade toward the 200-day moving average will be imminent. Conversely, if demand returns and shrinks the existing supply, a reversal towards the flag's upper boundary will likely occur.

The 4-hour chart reveals a head and shoulders pattern, resulting in increased selling activity and a break below the pattern's neckline. A bearish divergence between the price and the RSI indicator has heightened bearish momentum, leading to a significant downward movement. Currently, the price is hovering around a critical support region marked by the 0.5 to 0.618 Fibonacci retracement levels and the flag's lower boundary.

If sellers break down this crucial support, an impulsive downtrend targeting the $2.9K support is expected. Conversely, if sufficient demand returns, a reversal towards the flag's upper boundary at $3.6K will likely occur. The price has experienced increased selling pressure near the $4K mark, leading to a significant decline. Analyzing potential liquidation levels is crucial for determining mid-term price targets.

Significant liquidity resides above the crucial $3.9K mark, potentially representing buy-stop orders from notable short positions. Reaching this crucial liquidity range would likely lead to increased market volatility and potentially trigger a short-squeeze event, driving the price higher. However, if selling pressure continues and Ethereum fails to reclaim higher levels, the price may consolidate or decline.