ETH/USD moved further south on Wednesday as it broke below 100-DMA. It is currently trading at 277 levels at the time of writing (Kraken).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 309.08

Kijun-Sen: 332.56

On the upside, resistance is seen at 295 (5-DMA) and a break above would see the pair testing 309 (10-DMA)/334 (20-DMA). Further strength would target 368 (78.6% retracement of 395 and 270)/ 395(September 01 high)/427 (trend line joining 271.40 and 395).

On the flip side, support is seen at 272 (Cloud top) and a consistent break below would drag the pair to 247 (1w 20-SMA)/ 234 (61.8% retracement of 134.78 and 395). Further weakness would see the pair testing 190/179 (200-DMA).

Momentum studies: Bias remains bearish on the daily chart with RSI weak at 36, MACD line below the signal line and stochs in the oversold zone. In addition, 5- and 10-DMA are also biased lower.

On the weekly chart, RSI is at 57 with lower bias and MACD is on the verge of a bearish crossover. The pair is currently hovering around 10-SMA and a break below would confirm further downside.

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

Recommendation: Hold for targets. SL: 340. TP: 265/234.

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