ETH/USD dropped to 407 levels on Wednesday before closing at 419 levels.

The pair failed to hold above the trend line joining 360 and 404.22 and is currently trading at 413 levels (Coinbase).

The pair’s upside is capped by 437 (5-DMA) and a break above would target 450 (trend line joining 828.97 and 515.88)/465 (50-DMA). Further strength would test 500.

On the downside, the pair is now eyeing support at key psychological level of 400 and further weakness could drag it to 393 (127.2% retracement of 418.23)/361 (1w 90-EMA).

Technical indicators are bearish on the daily chart with no major sign of reversal. RSI and stochs are biased sharply lower, and bearish MACD crossover below the zero line. Bias remains bearish on the intraday charts are well.

Call Update: We recommended staying short in our previous call. The call is progressing well.

Recommendation: Hold for target. Trail SL to 450. TP: 400/390/360.