ETCUSD finds buyers at key support level
Ethereum Classic/US Dollar Index (ETCUSD) Technical Analysis Report for Nov 10, 2018 | by Techniquant Editorial Team
ETCUSD ended Saturday at 9.49 losing $0.01 (-0.11%) on low volume. Trading $0.08 higher after the open, ETC/USD was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETCUSD as at Nov 10, 2018):
Saturday's trading range has been $0.13 (1.37%), that's below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETCUSD. Prices continued to consolidate within a tight trading range between 9.40 and 9.72 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 9.45 earlier during the day, the cryptocurrency bounced off the key technical support level at 9.46 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on October 28th, ETCUSD actually lost -5.62% on the following trading day. The market closed back below the 20-day moving average at 9.49. ETCUSD found buyers again today around 9.45 for the third trading day in a row after having found demand at 9.40 in the previous session and at 9.43 two days ago.
While ETC/USD is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could accelerate should prices move below the nearby swing low at 9.40 where further sell stops might get activated. With prices trading close to this year's low at 8.78, downside momentum could speed up should the cryptocurrency break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ETC/USD. Out of 56 times, ETCUSD closed lower 57.14% of the time on the next trading day after the market condition occurred.
With six out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 1.7% and ETHUSD closing 1.26% higher. None of the markets ended the day in the red. Looking at the Minor Cryptocurrencies, the winners of the day have been XEMUSD surging 5.34% and DOGEUSD closing 3.88% higher. The worst performers of the day have been ZECUSD tanking -2.84% and ZECBTC closing -2.72% lower. Read more