ETH/USD dropped to 216 levels on Monday, before closing at 252 levels. It is currently trading at 240 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 289.25

Kijun-Sen: 314.50

On the topside, immediate resistance is seen at 263.83 (23.6% retracement of 417 and 216.51) and a break above would see the pair testing 280 (5-DMA)/308.81 (10-DMA)/322 (20-DMA).

On the downside, strong support is seen at 221.82 (50-DMA) and any violation would target 199 (1W 10-SMA)/171 (100-EMA). Further weakness would drag it to 138.24 (100-MA)/107 (May 27 low).

Momentum studies: Overall bias remains bearish with RSI weak at 38 and MACD line below the signal line. Stochs are in the oversold zone on the daily chart. Bias is weak on the intraday and weekly charts as well.

Call Update: We had advised staying short in our previous call. The pair has hit TP1.

Recommendation: Book partial profits. Bias still lower, fresh shorts could also be entered on a break below 50-DMA. SL: 280. TP: 200/171.

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