ETHBTC unable to break through key resistance level
Ethereum/Bitcoin Index (ETHBTC) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ETHBTC ended Saturday at 0.02251 edging lower BTC0.00010 (-0.44%) on low volume. Trading BTC0.00018 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 (ETHBTC as at May 23, 2020):
Saturday's trading range has been BTC0.00033 (1.46%), that's far below the last trading month's daily average range of BTC0.00072. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ETHBTC.
After moving higher in the previous session, Ether closed lower but above the prior day's open today, forming a bearish Harami Candle.
Unable to break through the key technical resistance level at 0.02261 (R1), the market closed below it after spiking up to 0.02279 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 0.02271 in the previous session, Ethereum ran into sellers again around the same price level today, failing to move higher than 0.02279. The last time this happened on Thursday, ETHBTC actually gained 3.15% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for ETH/BTC. Out of 178 times, ETHBTC closed lower 57.87% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 65.17% with an average market move of -0.92%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more