ETH/USD dropped to 870 levels on Tuesday, but managed to close above 20-DMA at 1063 levels. Today, however, the pair again breached the 20-DMA support and is currently trading at 965 levels at the time of writing (Kraken).
On the upside, resistance is seen at 1037 (4h 100-SMA) and a break above would see it testing 1089 (4h 90-EMA)/1100. Further strength would target 1168 (1h 50-SMA)/1203 (10-DMA)/1254 (3h 50-SMA)/1300/1366 (January 10 high).
On the downside, support is seen at 925 (61.8% retracement of 512 and 1594.89) and a break below would target 878 (4h 200-SMA). Further weakness would drag it to 802 (55-EMA)/762 (50-DMA)/733 (61.8% retracement of 201 and 1594.89)/670 (90-EMA).
Momentum studies: Bias remains bearish on the daily chart with RSI slipping below 50, bearish MACD crossover and stochs biased sharply lower.
The pair has found strong support near 4h 200-SMA and a break below would confirm further downside.
Call Update: We recommended going short in our previous call. The pair has almost hit all the targets.
Recommendation: Book partial profits, stay short. Trail SL to 1120. TP: 802/762.
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