Ethereum Price Drops, Approaching Crucial $3,000 Support Zone

According to CryptoPotato, Ethereum's price has been on a downward trend after failing to break past the $4,000 resistance level. Over the past 24 hours, the selling pressure has increased, with the bears seemingly targeting the significant resistance level at $3,000. The daily chart reveals that the price has fallen below the $3,600 level and is quickly nearing the $3,000 support zone. The 200-day moving average is also around the $3,000 mark, further emphasizing the importance of this level. The Relative Strength Index has fallen below 50%, indicating a shift in momentum towards the bearish side. If the $3,000 level breaks down, Ethereum could potentially face a further drop towards $2,800 and possibly even the $2,200 zone. On the 4-hour timeframe, the price has been making lower highs and lows since the rejection from the $4,000 resistance level. Currently, the cryptocurrency is nearing a long-term bullish trendline. A break below it could potentially trigger a bearish phase in the upcoming weeks. However, the RSI has fallen below 30%, indicating that Ethereum is oversold on the 4-hour chart. Therefore, a rebound from the trendline or the $3,000 level is still a possibility. While Ethereum's price has been trending downwards after failing to break above the $4,000 level, the sentiment in the futures market is weakening. The Ethereum funding rate metric, which measures whether buyers or sellers are more aggressively executing their orders, shows that funding rates are declining as the price is trending down. This indicates a gradual shift in sentiment, which might not necessarily be negative for the price. This is due to the potential for a long liquidation cascade, or the magnitude of a possible one, as the futures market cools down.