Here is a visual method to see that $\Gamma(2)$ has a fundamental domain contained in the strip $\{x+iy : 0\leq x\leq 1\}\subset \{x+iy : -1\leq x\leq 1\}$. You can use Helena Verrill's fundamental domain drawer applet to draw the usual fundamental domain for $\Gamma(2)$ and then modify it to fit other conditions. First select "Gamma(N)" below, choose $N=2$, click draw, and then click edit. By clicking on the little yellow dots you can move different triangular components of the fundamental domain to other regions. By following these instructions, I got the following picture of a fundamental domain for $\Gamma(2)$:
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Now, in order to prove that this is in fact a fundamental domain for $\Gamma(2)$, you can start by showing that the fundamental domain originally depicted by the app is indeed a fundamental domain for $\Gamma(2)$, and then just carefully write down what matrices bring the original domain to this one. As long as these matrices are in $\Gamma(2)$, the two domains are equivalent.