After a rapid decline, Ethereum found support in a significant zone including the 100-day moving average and the critical price range between the 0.5 and 0.618 Fibonacci levels. As a result, a bullish rebound is expected in the medium term.

Technical analysis shows that the price found support in a key area including the 100-day moving average at $3,050 and a significant price range between the 0.5 Fibonacci levels ($3190) and 0.618 ($2972).

Despite the bullish indications, an unexpected break below this critical support zone could cause a cascading effect towards the 200-day moving average at $2.5K.

A closer look at the 4-hour chart reveals the formation of a waning wedge during a multi-month consolidation. However, given the potential buying pressure in this key range, the price has entered a consolidation phase with minimal volatility.

In such a scenario, the next price target would be the critical resistance level at $3.5K. Otherwise, with a break below this support, the likelihood of a descent to the $2.7K support increases.

When observing the recent decline in the price of Ethereum, it is noticeable that the funding metric has reflected this trajectory, gradually declining to near zero levels. This indicates that the market is ready to resume long positions with the potential for a new upward move.