ETH/USD is continuing its downward move on Tuesday after it broke below Ichimoku cloud. It is currently trading at 600 levels at the time of writing.

On the upside, immediate resistance is seen at 608 (1h 10-SMA) and a break above would target 651 (1h 20-SMA)/700. Further strength would target 764 (December 19 high)/793 (5-DMA)/856 (Cloud bottom).

On the downside, support is likely to be found at 526 (127.2% extension of 1594.89 and 755) and any violation would see the pair testing 488 (200-DMA)/447 (78.8% retracement of 134.78 and 1594.89). Further weakness would drag it to 400.

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 31, MACD line below the signal line, stochs rolling over to oversold levels, and major moving averages biased lower. Bias is bearish on the intraday charts as well.

Call Update: We recommended staying short in our previous call. All the targets have been hit.

Recommendation: Bias bearish, stay short. Trail SL to 800. TP: 526/488.

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