ETHEUR closes within prior day's range after lackluster session
Ethereum/Euro Index (ETHEUR) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ETHEUR finished Saturday at 189.58 losing €0.72 (-0.38%) on low volume. Trading €3.46 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 (ETHEUR as at May 23, 2020):
Saturday's trading range has been €5.58 (2.93%), that's far below the last trading month's daily average range of €10.89. 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 ETHEUR.
After moving higher in the prior session, ETH closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on May 17th, ETHEUR actually gained 3.01% on the following trading day.
Prices are trading close to the key technical resistance level at 196.88 (R1). Ethereum ran into sellers again today around 193.76 for the third trading day in a row after having found sellers at 192.07 in the prior session and at 193.01 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 196.88 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ETH/EUR. Out of 119 times, ETHEUR closed higher 62.18% 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 56.30% with an average market move of 6.77%.
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