ETH/USD has broken the trend line support joining 512 and 755 and trading at 881 levels at the time of writing (Kraken).

On the upside, the pair will run into resistance at 943 (1h 10-SMA) and a break above would see it testing 1000/1070 (10-DMA). Further strength would target 1084 (20-DMA)/1100/1142 (trend line joining 1594.89 and 1234).

On the downside, support is likely to be found at 862 (1w 20-SMA) and a break below would target 791 (Cloud top)/755 (January 17 low)/733 (61.8% retracement of 201.28 and 1594.89). Further weakness would see it testing 700/665 (100-DMA)/600.

Momentum studies: Bias appears bearish on the daily chart with RSI weak at 41, MACD line below the signal line, stochs biased sharply lower, and the pair breaking below major trend line support. Bias is bearish on weeknly and intraday charts as well.

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

Recommendation: Bias bearish, stay short. Trail SL to 1060. TP: 791/755/733/700.

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