ETH/USD is trading in a very narrow range on Friday as its upside is capped by 5-DMA. It is currently trading at 326 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 329.73

Kijun-Sen: 287.59

On the topside, immediate resistance is seen at 333 (5-DMA) and a break above would see the pair testing 342 (10-DMA)/367.72 (61.8% retracement of 417 and 288). Further strength would target 389/417 (June 12 high)/433.

On the downside, strong support is seen at 318 (convergence of 20-DMA and trend line joining 107.06 and 303)/300. Any violation would see further bearishness in the pair targeting 288 (June 15 low)/ 262 (50% retracement of 107.06 and 417)/225.

Momentum studies: On the daily chart, RSI is strong at 62, while stochs and MACD suggest highly bearish bias. A decisive break below 20-DMA could be seen as an opportunity to go short.

Bias appears bullish on the 2-hour chart, with stochs on the verge of a roll over to the overbought zone, RSI at 52, and MACD line above the signal line. However, the pair is facing strong resistance at 340 levels (2h 100-SMA).

Recommendation: Good to go short on close below 20-DMA. SL: 333. TP: 288/262.

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