ETH/USD plunged to 980 levels mirroring the drop in other cryptocurrencies including bitcoin. It is currently trading at 1054 levels at the time of writing (Kraken).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 1280.45

Kijun-Sen: 1053.44

On the upside, resistance is seen at 1113 (3h 100-SMA) and a break above would see it testing 1201 (2h 100-SMA)/1262 (5-DMA). Further strength would target 1301 (2h 50-SMA)/1366 (January 10 high)/1400.

On the downside, the pair has found support near 1009 (20-DMA) and any violation would drag it to 925 (61.8% retracement of 512 and 1594)/900. Further weakness would target 863 (4h 200-SMA)/795 (55-EMA)/752 (50-DMA).

Momentum studies: On the daily chart, RSI and stochs have rolled over from overbought levels and MACD appears to be on the verge of a bearish crossover. 20-DMA is a major support for the pair and a break below would confirm further downside.

Recommendation: Good to go short on break below 1009. SL: 1200. TP: 925/900/863.

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