ETH/USD breached 100-EMA support on Tuesday and dropped to 175 levels. The pair today restored its strength to above the 200-mark and is hovering around this level at the time of writing (BTC-e).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 226.94

Kijun-Sen: 273.68

On the upside, the pair faces resistance at 214 (5-DMA) and a break above would target 236 (10-DMA)/260 (20-DMA). Further strength would see it testing 274 (trend line joining 107.06 and 216.51)/295 (Cloud top)/ 315 (June 28 high).

On the downside, a decisive break above 191 (100-EMA) would see further bearishness in the pair, targeting 169.02 (100-DMA) /139 (1w 20-SMA). Further weakness would see it testing 107 (May 27 low).

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. The pair has also broken below the Ichimoku cloud.

This bearish bias can also be seen on the weekly charts – the clear turn of 5-DMA, RSI at 60 with lower bias, fading upside momentum of MACD, and stochs biased lower.

Call Update: We recommended staying short in our previous call.

Recommendation: Hold for targets. Lower the trailing stop to 236. TP: 167/139.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest