ETH/USD is trading deep in the red on Tuesday and has broken below 20-DMA. It is currently trading at 447 levels at the time of writing (Coinbase).

The plunge follows Bancor’s recent announcement of a major security breach in which it lost $13.5 million, which includes $12.5 million in ETH.

On the upside, the pair is likely to face resistance at 470 (4h 50-SMA) and a break above would target 500/520 (50-DMA). Further strength would see it testing 559 (cloud bottom).

On the downside, the pair has found short-term support near 445 (4h cloud bottom) and any violation would further drag it to 421 (June 24 low)/409 (trend line joining 360 and 404.22)/368 (113% extension of 828.97 and 421.10).

Momentum studies: Bias has turned bearish on the daily chart with RSI weak at 40 and stochs rolling over from overbought zone. Bias is bearish on the hourly charts as well.

Recommendation: Good to go short on rallies around 450/460. SL: 510. TP: 420/400/370.