ETH/USD broke below major support at 50-DMA on Friday and is currently trading at 251 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 280.34

Kijun-Sen: 316.75

On the upside, the pair faces strong resistance at 270 (10-DMA) and a break above would see it targeting 291 (20-DMA)/ 315 (June 28 high)/340 (61.8% retracement of 417 and 216.51). Further strength would target 371 (June 18 high)/417 (June 12 high).

On the downside, the pair has broken below 50-DMA as well as trend line joining 107.06 and 261.51. It is currently hovering around 246 (Cloud top) and any violation would drag it to 225 (61.8% retracement of 107.06 and 417)/ 216.51 (June 26 low). Further weakness would target 189 (100-EMA)/160 (100-MA).

Momentum studies: The trend remains bearish on the daily chart with RSI weak at 42 and MACD line below the signal line. Stochs are also biased lower.

On the weekly chart, RSI appears to be on the verge of a rollover from the overbought zone and stochs are biased lower. However, MACD line is above the signal line.

Recommendation: Good to go short on break below 246. SL: 270. TP: 225/216

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