ETH/USD dropped to 545 levels on Thursday before successfully closing above 600 levels. It is currently trading at 595 levels at the time of writing (Coinbase).

On the upside, resistance is seen at 625 (50-DMA) and a break above would see it testing 649 (100-DMA)/659 (10-DMA). Further strength would target 696 (200-DMA).

On the downside, the pair trying to hold above cloud top at 589 levels and a break below would target 539 (61.8% retracement of 360 and 828.97)/528 (1w 50-SMA). Further weakness would target 500/460.

Momentum studies: Bias remains weak on the daily chart, RSI is weak at 39, MACD line is below the signal line, and stochs near oversold levels. Although the pair has bounced after dropping to 545 levels, overall bias suggests scope for further downside.

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

Recommendation: Hold for targets. Good to go short on break below cloud top.
SL: 650. TP: 540/520/500.

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