ETH/USD fell by nearly 10 percent on Tuesday to 427 levels, breaking below 78.6% fib of 360 and 828.97 at 460 levels. It is currently trading at 440 levels at press time (Coinbase).

On the topside, the pair faces resistance at 478 (trend line joining 828.97 and 494.74) and a break above would test 500/516 (50-DMA). Further strength would target 558 (cloud bottom).

On the downside, the pair has stopped just above the previous low of 421 levels (June 24) and any violation would see it testing 410 (trend line joining 360 and 404.22)/400/368 (113% extension of 828.97 and 421.10).

Momentum studies: Technical indicators are bearish on the daily chart. However, bullish RSI and stochs divergence leaves open the scope for minor upside.

Call Update: We recommended going short in our previous call. The pair has almost hit TP1.

Recommendation: Book partial profits, stay short. SL: 510. TP: 420/410/400.