FxWirePro: ETH/USD rangebound, break below 300 to see further downside

(Refer ETH/USD chart on Trading View)

ETH/USD is trading in an extremely close range on Monday as its upside remains capped by 5-DMA.

It fell to 305 levels on August 11 and is currently trading at 319 levels at the time of writing (Coinbase).

On the topside, the pair faces strong resistance at 330 (5-DMA) and a break above would see it testing 360 (10-DMA)/403 (20-DMA)/435 (50-DMA).

On the downside, the pair is currently holding above key psychological level of 300 and any violation would drag it to 275 (23 Oct 2017 low)/237 (113% extension of 828.97 and 305.14)/200.

Bias remains bearish on the daily chart with no major sign of reversal. The back to back dojis suggest current market indecisiveness. That said, there could be minor pullbacks as momentum indicators are in the oversold zone.

Watch out for a break below 300 levels for further downside in the pair.

Call Update: We recommended staying short in our previous call. The pair has almost hit TP2.

Recommendation: Book partial profits, stay short. Trail SL to 360. TP: 275/240.