ETH/USD continues trading in the red on Thursday and is trading at 271 levels at the time of writing (Kraken).
Ichimoku analysis (Daily chart):
Tenkan-Sen: 302.52
Kijun-Sen: 326
On the upside, resistance is seen at 288 (5-DMA) and a break above would see the pair testing 305.86 (10-DMA)/331.88 (20-DMA). Further strength would target 365 (78.6% retracement of 395 and 257)/ 395(September 01 high)/430 (trend line joining 271.40 and 395).
On the flip side, support is seen at 259 (trend line joining 134.78 and 257) and a consistent break below would drag the pair to 246 (1w 20-SMA)/ 234 (61.8% retracement of 134.78 and 395). Further weakness would see the pair testing 190/180 (200-DMA).
Momentum studies: Bias remains bearish on the daily chart with RSI weak at 35, MACD line below the signal line, and stochs in the oversold zone. In addition, major moving averages including 5, 10 and 20-DMAs suggest scope for further downside.
On the weekly chart, RSI is at 56 with lower bias, stochs are biased lower, and MACD is on the verge of a bearish crossover.
Call Update: We recommended staying short in our previous call. The pair has hit the first target.
Recommendation: Bias lower, stay short. SL: 340. TP: 234.
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