Ethereum has recently witnessed a significant decline, falling below the $3,000 mark. As investors brace for potential volatility, many are questioning whether this trend will continue. The price of ETH, which had been hovering around the $3,175 mark, has now entered a consolidation phase, with analysts suggesting it may soon attempt a recovery above $2,980.

The downward trend began as Ethereum struggled to maintain its position above $3,150, mirroring movements seen in Bitcoin. The price dipped below both $3,120 and $3,050, pushing it firmly into bearish territory. A low was recorded at $2,916, and currently, ETH is grappling with losses while trading beneath the 23.6% Fib retracement level from its recent high to low.

At this juncture, Ethereum is not only trading below the psychological $3,000 threshold but also beneath the 100-hourly Simple Moving Average, indicating bearish momentum. A bearish trend line is forming with resistance pegged at $3,120 on the ETH/USD hourly chart. Should the price manage to rise, it could face significant resistance around the $2,980 level.

The path ahead appears challenging. For Ethereum to regain some upward momentum, it needs to clear the $2,980 resistance. The first major resistance lies near the $3,050 level, alongside the 50% Fib retracement level from the $3,175 swing high to the $2,916 low. A decisive move above $3,080 could pave the way for further gains, potentially pushing ETH toward the $3,120 resistance.

Conversely, if Ethereum fails to hold above the $2,980 resistance and starts to decline, initial support can be found around the $2,950 level. The first major support is located near the $2,920 zone, and a clear drop below this could lead to further declines, targeting the $2,880 support. The bearish outlook suggests additional losses could push the price down to the $2,840 region, with a critical support level at $2,800.

Technical indicators are painting a grim picture for Ethereum. The hourly MACD is gaining momentum in the bearish zone, signaling that the selling pressure may not abate soon. Additionally, the RSI for ETH/USD has dipped below the 50 mark, further confirming the bearish sentiment.

As Ethereum navigates through this turbulent phase, questions loom regarding the broader cryptocurrency market. Crypto expert Crypto Wimar recently provided insights into the market's downturn, attributing the crash in Bitcoin, Ethereum, and XRP prices to persistent selling pressure. This context is crucial for understanding the current state of Ethereum and the potential for future volatility.

In summary, Ethereum's recent price decline under $3,000 raises critical questions about its short-term trajectory. While the current consolidation phase may offer some hope for recovery, the looming resistance levels and bearish indicators suggest that caution is warranted. Investors should remain vigilant as the market evolves, keeping an eye on potential recovery signs or further declines in the coming days.