The recent performance of the Ethereum market is notable. After a period of sideways consolidation, its price has attempted multiple times to break through the key resistance level of $3765, but has not succeeded. This failure to break through the key resistance often indicates a potential pullback.

As expected, Ethereum subsequently entered a downtrend channel. The price first dropped to $3720, and after a brief consolidation, further fell below the support level of $3700. This trend confirms the market's expectation of a potential pullback following a failed breakout.

From a technical analysis perspective, the Bollinger Bands indicator on the one-hour chart shows typical characteristics of a downward trend. Although the three lines are nearly parallel, the lower band is opening downwards, which typically indicates that the market is inclined to a sideways decline in the short term. The lower band acted as a brief support during this process, but it failed to prevent the price from declining further.

The Moving Average (MA) indicator has also given a bearish signal. The 5-day moving average and the 10-day moving average have formed a death cross and have crossed below the 30-day moving average. This moving average configuration is typically seen as a confirmation signal for a medium to short-term downtrend. It is worth noting that if Ethereum experiences a slight rebound, $3698 (corresponding to the MA5 moving average) will become an important resistance level.

Looking ahead, whether Ethereum can hold steady at $3698 will be the focus of the market. If it can break through and maintain this price level, it may signal the end of the short-term downtrend. However, if it cannot break through, the market may continue the current downward trend.

Investors should closely monitor the changes in these key price levels and technical indicators, while also being alert to the impact of market sentiment and external factors on prices. In such a volatile market, it is crucial to remain rational and cautious.