Ethereum is trading around $2,981, exhibiting signs of exhaustion and approaching resistance levels, as evident on the H4 chart.
ETH/USD is testing the top of the downtrend channel formed on December 10. If the cryptocurrency manages to break above this level, we could expect an upward acceleration, and it could reach $3,125 or even the 3/8 Murray at $3,437.
The H4 chart shows that the Eagle indicator has reached overbought levels, and a technical correction is more likely to occur in the coming hours towards the key support level of $2,880.
If Ether finds good support around $2,880, it could be seen as an opportunity to open long positions on the technical rebound.
In case of a sharp break below the key support level of $2,880, a bearish acceleration could occur, and ETH could reach the 1/8 Murray around 2,812.
Our outlook remains bearish for the coming hours as long as the price trades below the downtrend channel formed since December 10.
