ETH/USD dropped to 281 levels on Monday as it briefly broke below trend line joining 404.99 and 320. It is currently trading at 303 levels at the time of writing (Kraken).
Ichimoku analysis (Daily chart):
Tenkan-Sen: 338.15
Kijun-Sen: 333
On the upside, resistance is seen at 334 (20-DMA) and a break above would see the pair testing 354 (10-DMA)/395 (September 01 high)/404.99 (June 12 high). Further strength would see it testing 440 (113% retracement of 404 and 134)/478/500/547 (161.8% extension of 134 and 390).
On the flip side, the pair is currently hovering around 303 (channel bottom) and a decisive break below 285 (trend line joining 404.99 and 320) would drag the pair to 265 (90-EMA)/ 237 (1w 20-SMA)/ 190 (78.6% retracement of 134.78 and 395)/167 (200-DMA).
Momentum studies remain bearish with RSI, MACD, and stochs biased lower.
Recommendation: Good to go short on decisive break below 280. SL: 354. TP: 237.
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