ETH/USD continued trading in the red on Thursday and is currently hovering around 7-DMA at the time of writing. It is trading at 11.32 levels at press time (Kraken).
Ichimoku analysis (Daily chart):
Tenkan-Sen: 11
Kijun-Sen: 10.56
In daily charts, the pair broke below 7-DMA on Wednesday and dropped to 11.10 levels, before closing above at 11.39 levels. 7-DMA (11.21) is acting as a major support and a close below is likely to see some weakness in the pair.
Overall bias appears neutral as RSI has bounced-off from near overbought levels, and a rollover of Stochs from overbought levels along with a close below 7-DMA would confirm weakness in the pair.
A close below 11.21 (7-DMA) would target 10.80 (21-DMA)/10.70 (200-DMA). On the other hand, the pair is facing resistance at 11.63 (January 05 high and converging point of trend line joining 10.84 and 11.19) and a break above would see it testing 11.95 (113% retracement of 11.63 and 9.16).
