ETHCNY breaks back above 50-day moving average
Ethereum/Chinese Yuan Index (ETHCNY) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ETHCNY finished Sunday at 2547.42 gaining CN¥60.04 (2.41%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Saturday's high at 2490.45, Ether confirmed its breakout through the previous session high after trading up to CN¥64.72 above it intraday.
Daily Candlestick Chart (ETHCNY as at Oct 18, 2020):
Sunday's trading range has been CN¥67.79 (2.73%), that's slightly below the last trading month's daily average range of CN¥96.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ETHCNY. Prices continued to consolidate within a tight trading range between 2471.28 and 2555.17 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Ethereum managed to close back above the 50-day moving average at 2540.82 for the first time since October 12th. When this moving average was crossed above the last time on October 12th, ETHCNY actually lost -6.65% on the following trading day.
The cryptocurrency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 2644.97 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 2471.28 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for ETH/CNY. Out of 215 times, ETHCNY closed lower 56.74% of the time on the next trading day after the market condition occurred.
With six out of the seven 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. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other 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