ETHBTC runs into sellers again around 0.03221
Ethereum/Bitcoin Index (ETHBTC) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
ETHBTC ended the week -3.68% lower at 0.03166 after losing BTC0.00025 (-0.78%) today. Trading BTC0.00030 higher after the open, ETH 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.
Daily Candlestick Chart (ETHBTC as at Oct 23, 2020):
Friday's trading range has been BTC0.00067 (2.1%), that's slightly below the last trading month's daily average range of BTC0.00075. 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 slightly higher than usual for ETHBTC.
Unable to break through the key technical resistance level at 0.03196 (R1), Ether closed below it after spiking up to 0.03221 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 0.03215 in the previous session, ETH/BTC ran into sellers again around the same price level today, failing to move higher than 0.03221. The last time this happened on Monday, ETHBTC lost -4.15% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Its common bearish interpretation has been confirmed for ETH/BTC. Out of 350 times, ETHBTC closed lower 56.57% 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 58.00% with an average market move of 1.27%.