ETHBTC closes below its opening price unable to hold early session gains
Ethereum/Bitcoin Index (ETHBTC) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHBTC ended the week 0.73% higher at 0.02483 after losing BTC0.00009 (-0.36%) today on high volume. Trading BTC0.00008 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 26th, ETHBTC lost -2.19% on the following trading day. 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 (ETHBTC as at Jul 03, 2020):
Friday's trading range has been BTC0.00021 (0.84%), that's below the last trading month's daily average range of BTC0.00043. 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 ETHBTC. Prices continued to consolidate within a tight trading range between 0.02460 and 0.02507 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.
Prices are trading close to the key technical support level at 0.02473 (S1). After having been unable to move lower than 0.02474 in the previous session, Ether found buyers again around the same price level today at 0.02479.
Though ETH is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Further selling could move prices lower should the market test June's nearby low at 0.02417.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Its common bearish interpretation has been confirmed for ETH/BTC. Out of 325 times, ETHBTC closed lower 56.00% 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 seven trading days, showing a win rate of 58.46% with an average market move of 1.51%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 2.54% and XRPUSD closing 0.86% higher. On the flipside the worst performers have been ETHUSD closing -0.59% lower and BTCUSD losing -0.29%. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 7.62% and ICXBTC closing 6.57% higher. The worst performers of the day have been BTGUSD tanking -8.19% and BTGBTC closing -5.0% lower. Read more