- ETH/EUR upside momentum fades at 21-EMA, the pair retraces from session highs at 418 to trade at 408 levels.
- Price action in the pair remains below major EMAs and well below the daily cloud.
- The pair is trading in a downward slopping channel and price is currently testing channel top resistance.
- Indications that China might soften its stance towards digital assets is positive for the pair.
- China's Banking Regulatory Commission said that it was positive about the cryptocurrency market as long as domestic regulators properly license local operators.
- Downside has found support at major trendline at 365, the pair fails to close below.
- Technical indicators are still bearish, but we see bullish divergence on RSI and Stochs which raises scope for upside.
Recommendation: We advise a long position in the pair on a decisive break above 21-EMA, SL: 370, TP: 440/ 455