ETH/USD dropped to $303 levels following the congestion of the Ethereum network. It is currently trading at 322 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 337.63

Kijun-Sen: 282.02

On the topside, immediate resistance is seen at 337 (5-DMA) and a break above would see the pair testing 348 (10-DMA)/367.72 (61.8% retracement of 417 and 288). Further strength would target 389/417 (June 12 high)/433.

On the downside, strong support is seen at 312 (convergence of 20-DMA and trend line joining 107.06 and 303). Any violation would see further bearishness in the pair targeting 288 (June 15 low)/ 262 (50% retracement of 107.06 and 417)/225.

Momentum studies: On the daily chart, RSI is at 61 and stochs suggest weaker bias. MACD line is below the signal line.

On the 4-hour chart, the pair is struggling for a consistent break above 100-SMA and is hovering around that level. Stochs have rolled over from oversold zone, but bias remains weak. MACD line is below the signal line and RSI is weak at 41.

On the 2-hour chart, RSI is at 45 and stochs are biased higher. MACD line has crossed over the signal line from below.

Recommendation: Good to go short on close below 20-DMA. SL: 337. TP: 288/262.

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