ETH/USD plunged to 435 levels on Monday before closing at 554 levels. It is currently trading at 523 levels at the time of writing (Kraken).

On the upside, the pair faces strong resistance at 568 (7-DMA) and a break above would see it testing 596 (200-DMA)/608 (10-DMA). Further strength would target 653 (4h 90-EMA)/690 (2h 200-SMA)/702 (20-DMA).

On the downside, support is seen at 500 (113% retracement of 556 and 983.85) and any violation would see the pair testing 469 (Lower Bollinger)/442 (1w 50-SMA). Further weakness would drag it to 400/353 (1w 90-EMA).

Momentum studies: On the daily chart, RSI is at oversold levels, MACD line is below the signal line, which stochs appear to be rolling over from oversold levels.

Intraday bias appears bearish – on the 2h chart, the pair is rejected at 50-SMA, MACD is on the verge of a bearish crossover, RSI is below 50 and stochs are rolling over from overbought levels.

Bias remains weak on the weekly chart as well. The pair has found strong support near 50-SMA and a break below would see further downside.

Recommendation: Good to go short on rallies around 520/530. SL: 600. TP: 500/469/442.

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