ETH/USD failed to hold above 700 and is currently trading at 656 levels at the time of writing (Coinbase).
On the upside, resistance is seen at 686 (1h 20-SMA) and a break above would test 700/730 (100-DMA). Further strength would target 745 (61.8% retracement of 982.99 and 360)/764 (38.2% retracement of 1419.96 and 360).
On the downside, support is seen at 642 (1h 100-SMA) and a break below would test 594 (10-DMA)/543 (Cloud bottom). Further weakness would drive the pair further down to 518 (20-DMA).
Momentum studies: On the daily chart, MACD line is above the signal line and the pair is holding 10-DMA support. However, RSI is on the verge of a rollover from overbought levels and the pair faces strong resistance at 100-DMA.
Intraday bias appears bearish, but the pair is holding cloud support on 1h chart.
Call Update: We recommended staying long in our previous call. TP1 has been hit.
Recommendation: Watch for a break below 1h 100-SMA for scope for minor downside.
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