The Ethereum's price has seen difficulty breaking below the critical $3K support level, as selling pressures have been countered by adequate demand, leading to a period of sideways consolidation. However, a sudden breach below this pivotal point may set off a cascading effect.

Daily Analysis

Upon analyzing the daily chart, Ethereum's direction has turned bearish after encountering a significant rejection near the $4K level, instigating a negative sentiment among investors.

Despite this, a gradual decline paused at a substantial support level encompassing the crucial $3K mark, with further support found within the price range of the 0.5 ($3133) and 0.618 ($2906) Fibonacci levels. This support area aligns closely with the critical 100-day moving average, indicating strong demand at this pivotal juncture.

At present, Ethereum is in a phase of sideways consolidation, with the price hovering around the important $3K support region. This suggests a potential accumulation phase taking place, which might lead to a robust bullish comeback in the near future. However, a sudden breach of this essential support area could initiate a chain reaction targeting the $2.5K region and the 200-day moving average at $2.6K.

In the 4-Hour Chart

The analysis of the 4-hour chart indicates that Ethereum's multi-month decline has formed a descending wedge pattern, with the price finding stability along the lower boundary of the pattern on multiple occasions.

Ethereum is currently showing sideways movement near the lower boundary of the wedge pattern, corresponding to the $3K support level, signifying increased buying activity.

Despite this, it appears that the cryptocurrency is likely to continue its consolidation within the price range bounded by the $3.4K resistance level and the $3K support. Based on recent market trends and sentiment, there is an expectation for the price to break above this critical range, potentially leading to a renewed bullish momentum targeting the $3.6K threshold.

During Ethereum's sustained downtrend from the rejection at $4K, market participants are closely observing the behavior of traders in the futures market. The liquidation heatmap for the Binance ETH/USDT pair demonstrates significant liquidity zones that can impact price movements.

A sudden drop beneath the vital $3K level resulted in the liquidation of numerous long positions, triggering a series of sell-stop orders. However, the price has since stabilized around the pivotal $3K support level, indicating a possible accumulation phase in the market.

Considering the potential demand near this critical level, it is anticipated that the price may initiate a fresh bullish movement once the accumulation phase concludes. Traders are advised to monitor the price action around the $3K mark closely, as a sudden breach below this crucial point could potentially lead to a cascading effect towards the $2.5K threshold.