ETH Price Analysis: Remains Pressured Below 0.5% Fibonacci Retracement Level

ETH price continues to move in a range-bound manner with high or low trading volumes alternatively. Investors are advised for a clear directional bias,  before placing aggressive bids. ETH is under the formation of a sound bottom formation that holds a key to a trend reversal. We advised keeping a tab on any sudden movement to capture the gains.

• ETH price edges lower on Thursday, but the sellers contained near $2,900.
• Investors remain befuddled toward both ends with higher lows and lower highs in a consolidated range.
• A sudden breakout toward $3,000 and above cannot be ruled out around solid bottom formation.

As of press time, ETH/USD is trading at $2,932.19, down 0.26% for the day. The 24-hour trading volume of the second largest cryptocurrency is holding at $16,774,289,281 according to CoinMarketCap.

ETH price seeks upside reversal

ETH price has been trading in a short-term consolidation since January 9, the range extends from $2,500 and $3,200. However, the price surged nearly 44% from the lows of $2,445, the Fibonacci extension with a swing high of $3,581.60.

Furthermore, the price retreated sharply with a descent of 24% to the recent lows of $2,716. This also coincides with the 0.786% Fibonacci retracement level, which acted as a firm support level. But, the upside face strong upside hurdle near $3,000. A resurgence in the buying momentum would push the price above $3,000 followed by the $3,200.

The Moving Average Convergence Divergence (MACD) scrolls below the midline but with an increasing upside momentum. Any uptick in the oscillator would advocates the jump in the price.

On the other hand, a break below the demand zone extending from $2,800 and $2,750 would be enough to trigger a fresh round of selling at least in the short-term. In that scenario, the sellers would keep their eyes on $2,600 and $2,400.