ETH/USD is moving south as it breached cloud top on June 07. It is currently trading at 231 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 257.09

Kijun-Sen: 293.99

The pair’s upside is being capped by 246 (5-DMA) and a break above would target 252 (10-DMA)/265 (50-DMA)/274 (20-DMA). Further strength would see it testing 294 (Cloud top)/ 315 (June 28 high)/340 (61.8% retracement of 417 and 216.51).

On the downside, the pair is likely to find support at 225 (61.8% retracement of 107.06 and 417) and a break below would drag it to 216.51 (June 26 low). Further weakness would target 192 (100-EMA)/166 (100-MA).

Momentum studies: Overall trend remains extremely bearish:

• On the daily chart, MACD line is below the signal line, RSI is weak at 38, and stochs appear to be on the verge of a rollover into oversold zone.
• On the weekly chart, RSI has rolled over from the overbought level and stochs are biased lower. The pair is hovering around 10-SMA and a consistent break below would confirm further downside.
• Bias appears weak on the intraday charts as well.

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

Recommendation: Hold for targets. Lower the trailing stop to 265. TP: 225/216.

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