Ethereum's price has entered a significant support zone after a bearish correction, according to a detailed examination of the daily chart. The zone spans the price range between the 0.5 ($3421) and 0.618 ($3289) Fibonacci levels, coinciding with the critical support of the 100-day moving average ($3387).

This area is poised with potential demand, where market participants might be inclined to open long positions. An increase in demand is expected, leading to a mid-term bullish reversal targeting the $4K resistance.

The 4-hour chart shows Ethereum’s recent corrective move, with the price forming a bullish continuation flag pattern. If the price breaks out from the upper boundary of this pattern, it signals a potential continuation of the bullish trend.

The Ethereum funding rate metric, which indicates whether buyers or sellers are executing orders more aggressively, recently showed a notable increase after a period of slight declines. This uptick suggests that demand is present near the crucial support level of $3.3K, potentially halting further downward pressure and initiating a bullish reversal. If the funding rate metric continues its upward trend, it indicates that the futures market sentiment is turning bullish, making a mid-term bullish reversal more likely.