Ethereum (ETH) Price Looks 20% Upside From Being Oversold

Ethereum (ETH) price trades in green on Thursday in the US session, following a negative opening in the ASIA-pacific trading zone. The pair opened below the 20 EMA (Exponential Moving Average) at $2,497.98 and retreated lower. However, recovered swiftly to trade higher at the session’s high above inflection point.

• Ethereum (ETH) price exhibits consolidation in a tight trading range.
• Price moves in a short-term trading range of $2150 and $$2750.
• The formation of Doji candlesticks shouts for some bullish action.

At the time of writing, ETH/USD is trading at $2,478, up 0.54% for the day. Looking at the trading volume, there have been gains of more than 26% in the past 24-hour at $21,172,193,398 as per the CoinMarketCap.

Turnaround on the daily chart !!

On the daily hour chart, Ethereum (ETH) price formed a ‘ Hammer’ candlesticks formation that is a bullish reversal pattern. Investors could bargain hunt neat the current levels and participate in the impending upside momentum. After a big single-day fall on January 21 with losses of 18%, the price took a breather at the horizontal support level near $2,500.

The volume has been falling consistently ever since the Ethereum downfall begins on November 9 ATH at $4,842.54 as can be seen on the PVT (Price Volume Trend). Furthermore, the momentum oscillator the daily relative strength index (RSI) begins to rise from the oversold zone from January 22 heading toward the bullish crossover.

Any uptick in the indicator will bring fresh buying opportunities for the long waiting buyers. The interim target is placed at $2,800. A decisive break above the 50/100/200 EMA at $3,600 could see the bulls craving further for $4,000.

On the other hand, if the price breaks below the session’s low at $2,355.13 then the bears will enjoy the lows made on Monday at $2,159.0. Market participants would then seek to liquidate their position toward the $2,000 level.