Ethereum is trading within a downtrend channel formed on the H1 chart since December 21, below the 21 SMA and below the 200 EMA under bearish pressure. Ether is forming a consolidation, which could be a sign of a recovery.

If Ether decisively breaks the downtrend channel and consolidates above the psychological level of $3,000 and above the 200 EMA, it could be seen as a clear signal to buy with targets at 2/8 of Murray around $3,125.

Conversely, if Ether fails to break the downtrend channel, we could expect a resumption of the decline, and it could reach 1/8 Murray around $2,812.

From our perspective, Ether will continue its rise as the Eagle indicator is showing a positive signal. We should expect a break of the downtrend channel and a consolidation above $2,950, then we could open long positions with targets at $3,026 and $3,125.

On the contrary, Ether could fall more sharply and deeper if it breaks below $2,800 in the coming days, then the outlook could be negative and it could reach the psychological level of $2,500.

The outlook will be positive for ETH/USD if consolidates above $3,000 in the coming days.