ETH price makes significant moves on Wednesday, the price manages to gather some upside momentum following the downswing since April 4. Although, the price found strong support around $2,950, but still faces challenges below the critical moving averages.
- ETH price manages to trade in the green with decent gains.
- Investors expect to reach $3,300 above the daily close of the 50-day EMA.
- The momentum oscillator hovers near the oversold zone favoring the bullish outlook.
ETH price looks for upside signal
ETH price attempts to revive from the recent downswing, as for the past three sessions the price hovers near $2,950. But the recent technical setup suggests a bullish reversal around the corner.
A ‘Morning star’ formation, a bullish pattern formed near the recent lows. But the upside faces an immediate upside hurdle at the 50-day and 200-day EMAs (Exponential Moving Average) at $3,075 and $3,157 respectively.
A sustained buying pressure would push the ETH price toward the horizontal resistance zone at $3,339.99. Further, this also coincides with the descending trend line.
On the contrary, a daily candlestick below $2,950 could pose a downside risk again. In that case, the first downside is placed near $2,750.
ETH’s price has been trading in a short-term range of $2,300 and $3,400 since January. The price attempted to break the range on April 1, but the bulls failed to break away the range and retraced back to the upper boundary.
The bearish trend line, which is extending from the $4,867.81 made on November 10 acts as a strong resistance barrier for the bulls.
The stochastic oscillator remains in the oversold zone for the last three sessions. Any uptick in the indicator would bring the much-needed bullish momentum to the pair.
As of press time, ETH/USD trades at $3,102 up 2.41% for the day.