ETH/USD (Ethereum) is trading around $1,948, showing signs of exhaustion in the bearish momentum, and is likely to consolidate above the 2/8 Murray in the coming hours, awaiting a decisive breakout from the downtrend channel. So, it can surpass the psychological level of $2,000.
If Ethereum consolidates above $2,000 in the coming hours, we could expect it to reach the 3/8 Murray around $2,187 and finally reach the 200 EMA, a level that coincides with the 4/8 Murray around $2,500.
Conversely, a fall below 2/8 Murray could mean an active continuation of the downward movement, and ETH is likely to reach the 1/8 Murray around $1,562. It could even reach the lower band of the downtrend channel around the psychological level of $1,500.
Cryptocurrencies are likely to remain under bearish pressure in the short term. Nevertheless, Ethereum is expected to rebound to $2,200 or even $2,500 in the coming days.
We must keep an eye on Bitcoin's performance as it has a strong correlation with Ethereum. If Bitcoin reaches the psychological level of $60,000, Ethereum will likely reach the February 5 low around $1,700 or could even reach the 1/8 Murray around $1,562.
A recovery of Bitcoin above the psychological level of $70,000 could favor Ethereum, and we can look for opportunities to buy above $2,000.
