ETH/USD dropped to 250 levels on Thursday as its upside is capped by trend line resistance joining 395 and 300. It is currently trading at 263 levels at the time of writing (Kraken).

Ichimoku analysis (Daily chart):

Tenkan-Sen: 251.36

Kijun-Sen: 298.14

On the upside, immediate resistance is seen at 278 (100-DMA) and a break above would target 284 (trend line resistance joining 395 and 300)/291 (20-DMA). Further strength would see it testing 305 (50-DMA)/321 (61.8% retracement of 395 and 201.28)/395 (September 01 high).

On the flip side, support is seen at 241 (cloud bottom) and violation would see it testing 234 (61.8% retracement of 134.78 and 395)/209 (trend line joining of 134.78 and 201.28). Further weakness would drag it to 190 (200-DMA)/ 177 (July 29 low).

Momentum studies: Bias appears bearish on the daily chart with RSI weak at 42 and MACD line below the signal line.

On the weekly chart, the pair is trading just above 20-SMA and a break below would see further downside. RSI is holding at 55, stochs are biased lower, and MACD is on the verge of a bearish crossover.

Recommendation: Good to go short on break below 240. SL: 284. TP: 209/190.

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