ETH/USD has entered Ichimoku cloud and currently trading just above 200-DMA at 640 levels at press time (Coinbase).

On the upside, a decisive break above 634 (200-DMA) would see the pair testing 664 (Upper Bollinger)/711 (Cloud top). Further strength would target 743 (100-DMA)/764 (38.2% retracement of 1419.96 and 360).

On the downside, support is likely to be found at 596 (2h 50-SMA) and any violation would test 562 (10-DMA)/526 (3h 100-SMA). Further weakness would pull the price down to 500/488 (20-DMA).

Momentum studies: Bias appears bullish on the daily chart with RSI near overbought levels, MACD line above the signal line, and 10- and 20-DMA biased higher. However, death cross and stochs in overbought zone call for high caution.

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

Recommendation: (i) Book partial profits, stay long. Trail SL to 560. TP: 664/711.
(ii) Good to go long on close above 200-DMA.

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