ETH/USD moved further south on Thursday as it broke below trend line support joining 556 and641. It is currently trading at 590 levels at the time of writing (Kraken).

On the upside, resistance is seen at 606 (1h 20-SMA) and a break above would target 642 (2h 20-SMA)/696 (10-DMA). Further strength would see it testing 776 (20-DMA)/800/856 (100-DMA).

On the downside, the pair is currently hovering around 591 (200-DMA) and further weakness would drag it to 556 (February 06 low)/512 (December 22 low)/500. A break below 500 levels would target 439 (127.2% retracement of 556 and 983.85)/400.

Momentum studies: Bias remains bearish on the daily chart with RSI on the verge of a rollover to the oversold levels, MACD line below the signal line, and stochs at oversold levels. Bias appears bearish on the weekly chart as well.

On the 1h chart, bullish MACD crossover and RSI and stochs rolling over from oversold levels suggest minor bullishness in the pair.

Call Update: We recommended going short in our previous call. Both the targets have been hit.

Recommendation: (i) Book partial profits. Bias bearish, stay short. Trail SL: 700. TP: 556/512.

(ii) Good to go short on break below 590.

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