ETH/USD broke above the trend line joining 271.40 and 345.99 and hit a high of 389.50 so far in the day. It is currently trading at 368 levels at the time of writing (Kraken).
Ichimoku analysis (Daily chart):
Tenkan-Sen: 342.31
Kijun-Sen: 305.25
On the upside, the pair will now run into resistance at 400 and a consistent break above would target 422 (113% extension of 134.78 and 389.78)/440 (113% retracement of 404 and 134). Further strength would see it testing 458/478/500.
On the flip side, support is seen at 353 (5-DMA) and any violation would drag it to 337 (10-DMA)/318 (20-DMA)/292 (38.2% retracement of 134.78 and 389.50)/283 (trend line joining 134.78 and 177.80).
Momentum Studies: On the daily chart, RSI is at 75, MACD line above the signal line, and major moving averages biased higher. However, caution is advised as stochs are in the overbought zone.
The pair, however, is showing a dip after it hit 389.50 levels. A shooting star formation on the 1-hour chart along with weaker momentum studies suggest scope for further downside. A close below 366 (trend line joining 271.40 and 345.99) would target 353/337.
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