ETCUSD runs into sellers again around 5.65
Ethereum Classic/US Dollar Index (ETCUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
ETCUSD ended Saturday at 5.58 gaining $0.02 (0.36%) on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETCUSD as at Oct 17, 2020):
Saturday's trading range has been $0.11 (1.98%), that's far below the last trading month's daily average range of $0.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ETCUSD.
Unable to break through the key technical resistance level at 5.61 (R1), ETC/USD closed below it after spiking up to 5.65 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 5.62 in the previous session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 5.65. The last time this happened on October 6th, ETCUSD lost -0.18% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 5.42 where further sell stops could get activated. Further selling might move prices lower should the market test September's close-by low at 5.05.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ETC/USD. Out of 391 times, ETCUSD closed higher 50.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 49.62% with an average market move of 2.56%.
With three of the other Major Cryptocurrencies closing higher and three closing lower today, the winners of the day are ETHUSD surging 0.81% and BTCUSD gaining 0.37%. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more