In the wake of a 5% daily decline, Ethereum's (CRYPTO:ETH) price analysis points to a pivotal support level at $3,000, coinciding with the lower boundary of a descending channel pattern and the 200-day moving average.

Despite recent bearish rejections around the $3,500 and $3,350 levels, technical indicators like the RSI suggest potential oversold conditions, hinting at a possible recovery.

However, the futures market sentiment, as indicated by the Taker Buy Sell Ratio, reflects significant bearish sentiment following the rejection from the $4,000 mark.

Investors are closely watching whether Ethereum can hold above $3,000 to gauge the likelihood of a recovery or further downside pressure in the short term.