Ethereum is trading around $3,125, consolidating above the 21 SMA, below the 200 EMA, and below the uptrend channel formed since November 21. Ethereum is showing signs of exhaustion. Hence, a drop below $3,097 could accelerate a sharp technical correction to reach the 1/8 Murray support.

Conversely, if Ethereum breaks above $3,200 and consolidates above this zone, we could expect it to reach the 3/8 Murray around $3,437.

A technical rebound around the support at the bottom of the uptrend channel, located at $2,800, could present a good opportunity to enter long positions to hit the 3/8 Murray at $3,437.

Technically, the Eagle indicator is showing a negative signal. So, if there is a technical rebound above $3,125, we could expect ETH to hit a strong resistance level around $3,200, which would signal a resumption of selling with a target at $2,802.

If the bearish force prevails and breaks below $2,800, ETH could easily reach the psychological level of $2,500.