FxWirePro: ETH/USD fails to break above 10-DMA, bias lower, good to go short on rallies
ETH/USD failed to close above 10-DMA and is trading deep in the red on Wednesday. It is currently trading at 328 levels at the time of writing (BTC-e). Ichimoku analysis (Daily chart): Tenkan-Sen: 341.50 Kijun-Sen: 262.0…
By Shampa Mani
Updated 1 min read
Image from the original EconoTimes article
ETH/USD failed to close above 10-DMA and is trading deep in the red on Wednesday. It is currently trading at 328 levels at the time of writing (BTC-e).
Ichimoku analysis (Daily chart):
Tenkan-Sen: 341.50
Kijun-Sen: 262.03
The pair is facing stiff resistance at 355.65 (10-DMA) and a break above would see it testing 367.72 (61.8% retracement of 417 and 288)/389. Further strength would target 417 (June 12 high)/433.
On the downside, immediate support is seen at 316 (2h 200-SMA) and a decisive break below would see further bearishness in the pair. It would then target 307 (20-DMA)/ 288 (June 15 low). Further weakness would see it testing 262 (50% retracement of 107.06 and 417)/225.
Momentum studies: On the daily chart, RSI has rolled over from the overbought zone and stochs suggest weaker bias. These, along with a bearish MACD crossover, suggest overall bearish bias in the pair.
Recommendation: Good to go short around 333. SL: 355. TP: 288/262.
Each tranche would typically seek a protection level near 90% of its reference value when options are acquired, implying about 10% initial maximum loss exposure before fees and expenses; the level may vary.
