Ethereum (ETH/USD) is trading around $2,072, below the 21-day SMA, within the downtrend channel that has been forming since May 12. On the H4 chart, we can see that Ethereum has attempted to break above $2,130 on several occasions but has been unsuccessful.
Given that Ethereum is consolidating below the 21 SMA, it could be at risk of further declines in the coming days, potentially reaching the psychological level of $2,000.
Even if bearish pressure prevails, Ethereum is expected to reach the lower band of the downtrend channel around $1,955.
A consolidation above $2,100 and a decisive break above the downtrend channel around $2,130 could be considered a clear buy signal, with targets around $2,201. We ultimately expect ETH to reach the strong 2/8 Murray resistance around $2,250.
The Eagle indicator has reached overbought levels and is showing a negative signal. Should a pullback toward $2,125 occur in the coming hours, this could be considered a signal to open short positions in the coming dayswith targets toward the 0/8 Murray level around $2,000. We even expect ETH to drop to the $1,950 zone.
