The Ethereum market is experiencing a period of significant volatility, with the cryptocurrency struggling to maintain a consistent price level. Following a brief consolidation near the critical $4K resistance mark, Ethereum faced increased selling pressure, leading to a decline in its value. However, market analysts predict that a substantial support zone is forthcoming, which may potentially curb further downward movement.

A closer examination of the daily chart reveals that Ethereum encountered heightened selling activity after a short consolidation period near the pivotal $4K resistance. This resulted in a notable rejection, indicating robust selling interest around the previous major swing high of $4K. The aggressive short positions near this key level have raised concerns among investors.

Despite this, a significant support zone lies ahead, encompassing the 100-day moving average at $3,430 and the 0.5 Fibonacci retracement level at $3,419. This suggests that the current price action may continue its bearish retracement in the short term, with the 100-day moving average and the 0.5 Fib level serving as primary support for buyers.

On the 4-hour chart, recent consolidation near the $4K level has led to the formation of a head and shoulders pattern, indicating a lack of bullish momentum and an increase in supply. This pattern is a well-known indicator of a potential short-term bearish reversal. The price has recently broken below the neckline of this formation, increasing the likelihood of a bearish scenario. Furthermore, a bearish divergence between the RSI indicator and the price has been observed, emphasizing seller dominance and raising concerns about Ethereum's future trajectory.

Currently, the price is at a critical support level of approximately $3.6K. If sellers succeed in breaching this pivotal level, the continuation of the bearish trend is the most probable outcome. With Ethereum's price struggling to surpass the $4K mark, traders are taking an interest in the behavior of futures market participants. The 7-day moving average of the Taker Buy Sell Ratio, which assesses the relative aggressiveness of buyers versus sellers, has failed to rise above one and has been declining sharply in recent days.

This trend suggests that the majority of futures traders have been selling Ethereum aggressively, either for speculative purposes or to realize profits. The significant drop in this metric serves as a bearish signal, implying that the current downward retracement could persist if this trend continues. As the Ethereum market navigates these fluctuations, investors are advised to exercise caution and closely monitor market developments.