According to CryptoPotato, Ethereum's price has been experiencing a prolonged consolidation period after failing to surpass the $4,000 resistance level. Technical analysis reveals that on the daily chart, the price recently rebounded from the $2,800 mark and surged towards the $3,500 resistance level, only to be rejected downward. Currently, ETH is trading below the $3,000 support level and has fallen beneath the 200-day moving average, which is around the $3,200 mark. This suggests a potential further decline in the short term.

On the 4-hour chart, the rejection from the $3,500 resistance level could be part of a larger bullish scenario. The price has corrected nearly 70% of its recent rally and is within the Fibonacci retracement golden zone, indicating a possible rebound. However, the Relative Strength Index (RSI) remains below 50%, suggesting that the momentum favors a further bearish move. This creates a complex situation for investors, who should proceed with caution.

Analyzing the fundamentals of the Ethereum network provides insight into market dynamics. The Exchange Reserve metric, which measures the amount of ETH held in exchange wallets, has been declining steeply over the past few months. Recently, however, there has been an increase in this metric, indicating that many investors are depositing their coins onto exchanges out of fear. This behavior could lead to an excess supply and further price declines.