Ethereum has seen a surge in selling activity recently, breaching the 100-day moving average and causing a significant drop towards the 200-day MA. Despite this, the price is currently at a substantial support region, potentially leading to a period of consolidation correction in the mid-term.

The daily chart reveals that sellers gained control after a period of corrective retracements near the crucial 100-day moving average at $3386, leading to a break below this key MA. This breach caused a long liquidation cascade, accelerating the bearish momentum and resulting in the price plummeting towards the 200-day moving average of $3096.

Despite the bearish sentiment, Ethereum is currently hovering around the crucial support region of $3K and is expected to undergo a period of consolidation before initiating its next major move.

The 4-hour chart shows a period of sideways consolidation above the $3.3K support, followed by aggressive selling activity and a breach of this crucial support region. However, Ethereum has landed on the substantial support region of $3K, which has previously supported the price multiple times.

The RSI indicator has dropped below 30, indicating potential short-term market correction before the next significant move. Hence, consolidation is likely in the short term, allowing the market to rest and regain momentum.

Sentiment analysis reveals a rise in selling activity, leading to a significant decline towards the critical $3K support zone. The chart indicates a notable liquidity pool below the crucial $3K, filled with sell-stop orders from aggressive long positions. If sellers push the price below the $3K support zone, a massive long-squeeze is expected, which would trigger the sell-stop orders, accelerating the bearish momentum. Traders should closely monitor the price action around the $3K support zone in the upcoming days to determine the cryptocurrency’s trend direction.