ETH/USD plunged to 134 levels on July 16 after it broke below 100-DMA. It is currently trading at 173 levels at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 190.31

Kijun-Sen: 232.72

On the upside, the pair faces immediate resistance at 178 (5-DMA) and a break above would target 198 (10-DMA)/233 (20-DMA). Further strength would see it testing 268 (50-DMA)/292 (trend line joining 107.06 and 216.51)/301 (Cloud top).

On the downside, support is seen at 162 (1h 20-SMA) and any violation would drag it to 134 (July 17 low)/ 107 (May 27 low). Further weakness would see the pair testing 98 (200-DMA)/66 (113% retracement of 107.06 and 417).

Momentum studies: Overall trend remains bearish as MACD line is below the signal line and RSI is weak at 35 on the daily chart. Stochs are in the oversold zone.

Call Update: We recommended staying short in our call on July 11. Both the targets have been hit.

Recommendation: Good to go short on close below 162. SL: 200. TP: 134/107.

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