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FxWirePro: ETH/USD breaks below key support at 500, stay short

ETH/USD moved further south on Wednesday as it broke below 500 levels. It is currently trading at 473 levels at the time of writing (Coinbase).

On the upside, the pair will run into resistance at 498 (1h 20-SMA) and a break above would see it testing 523 (4h 20-SMA)/541 (2h 50-SMA). Further strength would target 568 (20-DMA)/594 (Cloud bottom).

On the flipside, the pair is likely to find support at 460 (78.6% retracement of 360 and 828.97)/ 419 (convergence of 127.2% extension of 828.97 and 507 and trend line joining 202.25 and 360)/400.

Momentum studies: Bias remains bearish on the daily chart with RSI near oversold levels at 30, stochs rolling over to oversold levels and MACD line below the signal line. The downside is further supported by the breach of key support at 500 levels and the price action well below major moving averages.

Call Update: We recommended going short on break below 500 in our previous call. The call is progressing well.

Recommendation: Hold for targets. SL: 580. TP: 460/420.

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