Ethereum (ETH/USD) is trading around $2,286 within the downtrend channel that has been forming since October 18 and is rebounding after hitting a low of about $2,187 over the weekend.
Ethereum found strong support around the 6/8 Murray level; this level provided it with good upward momentum, but it is now struggling to continue rising, as it has reached the upper band of the downtrend channel. If Ethereum fails to break above this zone, a continuation of the downtrend can be expected, with key support at $2,187.
Conversely, if Ethereum decisively breaks out of the downtrend channel and consolidates above this zone, it will be viewed as a buy signal, with targets at the 200-day EMA, around $2,408.
If a pullback occurs toward $2,256 in the coming hours, it could be considered an opportunity to buy by taking advantage of the technical rebound, and this zone could offer an opportunity to buy Ethereum, with targets at the 6/8 Murray level, around the psychological mark of $2,500.
On October 29, the Eagle indicator reached the 5-point zone, signaling oversold conditions, and since then we have observed a technical rebound; therefore, Ethereum is likely to continue rising in the coming days and could reach $2,500.
