ETHEUR closes lower for the 2nd day in a row
Ethereum/Euro Index (ETHEUR) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHEUR finished Monday at 333.11 losing €9.64 (-2.81%). Closing below Sunday's low at 340.62, ETH confirmed its breakout through the previous session low after trading up to €16.23 below it intraday.
Daily Candlestick Chart (ETHEUR as at Oct 26, 2020):
Monday's trading range has been €22.66 (6.61%), that's far above the last trading month's daily average range of €13.39. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETHEUR.
Prices broke below the key technical support level at 333.82 (now R1), which is likely to act as resistance going forward. The last time this happened on October 20th, ETHEUR actually gained 5.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four 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. While it is usually interpreted as bearish, it has actually shown to be bullish for ETH/EUR. Out of 197 times, ETHEUR closed higher 59.90% 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 59.39% with an average market move of 3.96%.