For the 2950/2955/3550 series switch, EtherChannel balances the traffic load across the links in a channel by randomly associating a newly learned MAC address with one of the links in the channel. EtherChannel load balancing can use either source-MAC or destination-MAC address forwarding.
With source-MAC address forwarding, when packets are forwarded to an EtherChannel, the packets are distributed across the ports in the channel based on the source-MAC address of the incoming packet. Therefore, to provide load balancing, packets from different hosts use different ports in the channel, but packets from the same host use the same port in the channel. With destination-MAC address forwarding, when packets are forwarded to an EtherChannel, they are distributed across the ports in the channel based on the destination host MAC address of the incoming packet. Therefore, packets to the same destination are forwarded over the same port, and packets to a different destination are sent on a different port in the channel.