FxWirePro: ETH/USD upside capped by 10-DMA, bias lower

(Refer ETH/USD chart on Trading View)

ETH/USD dropped to 268 levels on Monday as it failed to hold above 300.

It is currently trading at 282 levels at the time of writing (Coinbase).

On the upside, immediate resistance is seen at 291 (10-DMA) and a consistent break above would target 300/334 (21-EMA)/365 (3h 200-SMA)/400.

On the flipside, support is seen at 265 (78.6% retracement of 250 and 322) and any violation would drag it to 250 (August 14 low)/ 230/200.

Bias remains bearish on the daily chart with RSI and stochs near oversold levels. The pair has found support near 78.6% fib and a break below will see it re-testing 250 levels.

Call update: We recommended going short in our previous call. TP1 has been hit.

Recommendation: Bias lower, stay short. SL: 340. TP: 250.