Ethereum is trading around $2,954 within the downtrend channel formed since December 8 and is showing signs of recovery after finding good support around 1/8 of the Murray level. A double bottom pattern is in progress.

If the bullish force prevails, we could expect ETH/USD to break decisively through the downtrend channel in the coming hours.

If ETH consolidates above the psychological level of $3,000, then we could expect it to reach the 200 EMA around $3,134 and even return to the 3/8 Murray levels around $3,437.

On the other hand, if ETH/USD falls below $2,906, where the 21 SMA is located, there is a chance that the bearish cycle will resume. If this scenario occurs, the cryptocurrency could return to $2,812. If the instrument breaks below this level, it could reach the bottom of the uptrend channel around $2,690, and possibly lower, to reach the 0/8 Murray level around $2,500.

The Eagle indicator is showing a positive signal after a consolidation in the oversold zone. We could expect Ethereum to reach $3,437 in the coming days and it could even return to 3,750.