FxWirePro: ETH/USD struggles told trend line support at 420, stay short

ETH/USD plunged to 412 levels as it breached trend line support joining 360 and 404.22.

The pair is down nearly 12 percent so far this week and is currently trading at 420 levels at the time of writing (Coinbase).

On the upside, resistance is seen at 448 (5-DMA) and a break above would see it testing 460 (cloud bottom)/486 (55-EMA)/500.

On the flipside, the pair is currently hovering around 420 (trend line joining 360 and 404.22) and a decisive break below would see it re-testing 400/ 360 (April 1 low).

Technical indicators are bearish on the daily chart – RSI is weak at 37 and stochs are at oversold levels with no major sign of reversal, and bearish MACD crossover below the zero line. Bias remains bearish on intraday charts as well.

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

Recommendation: Book partial profits, stay short. SL:470. TP: 400/360.