On Wednesday, Ethereum price makes substantial changes, gaining some upside momentum after a downward trend since April 4. Despite finding good support around $2,950, the price remains vulnerable below the crucial moving averages.
The price of ETH has been hovering above $2,950 for the previous three sessions, attempting to recover from the recent downturn. However, the latest technical setup shows that a bullish reversal is just around the corner.
A sustained purchasing pressure would bring the ETH price toward the $3,339.99 horizontal resistance zone. Furthermore, this corresponds to the downward trend line.
A daily candlestick below $2,950, on the other hand, might reintroduce a bearish danger. In that instance, the first negative is around $2,750.
Since January, the price of Ethereum has been fluctuating between $2,300 and $3,400. On April 1, the price attempted to break the range, but the bulls were unable to do so and the price retraced back to the upper border.
The negative trend line, which extends from the November low of $4,867.81, serves as a significant resistance barrier for the bulls.
For the last three sessions, the stochastic oscillator has been in the oversold zone. Any increase in the signal would provide the pair with much-needed positive impetus.
As of press time, Ethereum is trading at $3,102, a 2.41 percent increase.
ETH outpaced Bitcoin during the recent recovery surge, rising 47 percent in the last three weeks. The bullish rise reached a high of $3457, its highest level since early January.
However, sellers took advantage of the present market volatility and drove the altcoin below the $3300 support level. As a result, the ETH price has dropped by 10% since last week and is on track to give a weekly close below the shattered support.