ETHCNY pushes through Thursday's high
Ethereum/Chinese Yuan Index (ETHCNY) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ETHCNY ended the week 9.37% higher at 2786.08 after gaining CN¥93.37 (3.47%) today. Today's close at 2786.08 marks the highest recorded closing price since September 4th. Closing above Thursday's high at 2712.96, the cryptocurrency confirmed its breakout through the previous session high after trading up to CN¥121.52 above it intraday.
Daily Candlestick Chart (ETHCNY as at Oct 23, 2020):
Friday's trading range has been CN¥141.77 (5.26%), that's slightly above the last trading month's daily average range of CN¥125.87. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETHCNY.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 2792.68 (R1), ETH closed below it after spiking up to 2834.48 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 2530.36 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on Monday, ETHCNY actually lost -9.47% on the following trading day.
Ether shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for ETH/CNY. Out of 199 times, ETHCNY closed lower 55.28% 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 two trading days, showing a win rate of 57.79% with an average market move of -0.58%.