Ethereum's price has been experiencing a downward trend, following a second rejection from the $4,000 resistance level. The daily chart reveals a series of lower highs and lows since failing to break the $4,000 level. The market has also slipped below the 200-day moving average, around the $3,100 mark. Currently, the price is retesting the 200-day moving average, but seems to be facing rejection to the downside.

The 4-hour chart shows a more detailed view of the recent price action. The downtrend has intensified, with the market briefly dipping below the $3,000 support level. Despite an oversold signal by the RSI, the price has rebounded above the mentioned support zone. However, it lacks the momentum to continue higher and might be on the brink of a deeper decline toward the $2,700 area.

On-chain analysis reveals that during the Ethereum downtrend in recent weeks, many analysts have been seeking signs of capitulation that suggest a potential bottom. The Ethereum Exchange Reserve metric, which measures the amount of ETH held in exchange wallets, has seen an increase above its 30-day moving average following the recent brief decline below the $3,000 level. This could indicate the beginning of the capitulation phase, as many investors' stop losses were below the $3,000 level.