ETHCNY runs into sellers around 1505.62 for the third day in a row
Ethereum/Chinese Yuan Index (ETHCNY) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ETHCNY ended Saturday at 1487.12 edging lower CN¥16.96 (-1.13%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETHCNY as at May 23, 2020):
Saturday's trading range has been CN¥21.80 (1.45%), that's far below the last trading month's daily average range of CN¥92.95. 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 lower than usual for ETHCNY.
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. After moving higher in the previous session, Ether closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Thursday, ETHCNY actually gained 9.35% on the following trading day.
Prices broke below the key technical support level at 1501.03 (now R1), which is likely to act as resistance going forward. ETH ran into sellers again today around 1505.62 for the third trading day in a row after having found sellers at 1510.73 in the previous session and at 1510.23 two days ago.
The cryptocurrency shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 1510.73 where further buy stops might get triggered.
Among the 10 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for ETH/CNY. Out of 138 times, ETHCNY closed higher 57.25% 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 53.62% with an average market move of 4.45%.
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