FxWirePro: ETH/USD rejected at 50-DMA resistance, eyes key support at 420

ETH/USD is trading deep in the red on Tuesday as it broke below the trend line joining 404.22 and 441.

It is currently trading at 434 levels at the time of writing (Coinbase).

On the upside, the pair faces stiff trend line resistance at 460 and a break above would target 468 (50-DMA)/472 (Cloud bottom)/500. Further strength would target 520 (90-EMA)/561 (100-DMA).

On the flipside, the pair is now eyeing support at 420 (trend line joining 360 and 404.22) and any violation would drag it to 400/ 360 (April 1 low).

Technical indicators are bearish on the daily chart – RSI is weak at 40 and stochs are biased sharply lower. Bias is bearish on intraday charts as well.

Recommendation: Good to go short on rallies around 435/440. SL: 470. TP: 420/400/360.