ETCUSD runs into sellers around 5.62 for the third day in a row
Ethereum Classic/US Dollar Index (ETCUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
ETCUSD finished Sunday at 5.56 losing $0.02 (-0.36%) on low volume. Trading $0.04 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. 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 18, 2020):
Sunday's trading range has been $0.07 (1.25%), that's far below the last trading month's daily average range of $0.24. 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 5.42 and 5.65 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern. The last time a Last Engulfing Bottom Pattern showed up on Thursday, ETCUSD actually lost -0.54% on the following trading day.
Prices are trading close to the key technical resistance level at 5.66 (R1). The market ran into sellers again today around 5.62 for the third trading day in a row after having found sellers at 5.65 in the prior session and at 5.62 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 5.65 where further buy stops could get triggered. 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 eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ETC/USD. Out of 425 times, ETCUSD closed lower 51.06% 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 ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. None of the markets ended the day in the red. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more