According to U.Today, Ethereum has dropped below the $3,700 mark, raising concerns as it fails to break through the consolidation channel. This level has been a significant support area for Ethereum, and its recent decline could suggest that the bulls need to regroup as the bears gain strength. The sharp price swings are characteristic of volatile assets like Ethereum, and the current trend indicates that it is struggling to maintain its upward momentum. Ethereum has been in a consolidation phase, fluctuating between support and resistance levels following a significant rally. This kind of activity usually precedes a notable price change, either upward or downward. If Ethereum fails to hold, a deeper drop towards the 200-day moving average, a reliable indicator of the long-term trend direction, could occur. This could mean increased downside risk in the near term. Another important factor to consider is trading volume. The recent decline was accompanied by higher-than-average trading volumes, suggesting that sellers are becoming more active. This could mean that more traders are closing their positions, which would put additional downward pressure on the price. However, the Relative Strength Index (RSI) is hovering around neutral, indicating that Ethereum has room to recover if market sentiment shifts. It is currently neither overbought nor oversold.