ETH/USD continues trading in a tight range on Tuesday and is trying to hold above the 200 mark. It is currently trading at 205 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 205.42

Kijun-Sen: 217.30

On the upside, the pair faces strong resistance at 226 (trend line joining 417 and 257.85) and a break above would see it testing 246 (Cloud bottom)/ 267 (50-DMA)/299 (Cloud top). Further strength would see the pair testing 321 (trend line joining 107 and 216.51)/356 (78.6% retracement of 417 and 134.62).

On the reverse side, the pair is trading just above 203 (10-DMA) and any violation would drag it to 189 (100-DMA)/ 160 (lower bollinger)/134 (July 17 low). Further weakness would drag it to 107.06 (May 27 low)/66 (113% retracement of 107.06 and 417).

Momentum studies: Overall bias appears bearish as the pair’s upside is capped by trend line. Moreover, RSI is weak at 45 and Stochs are showing slightly lower bias. Weakness could be seen on the hourly charts as well.

Bearish bias could be seen on the weekly charts as well: 5-SMA points south, stochs are biased lower, bearish MACD crossover on signal line.

Recommendation: Good to go short on break below 203. SL: 230. TP: 189/134.

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