ETHGBP unable to break through key resistance level
Ethereum/British Pound Index (ETHGBP) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHGBP ended the week -0.9% lower at 180.92 after losing £1.00 (-0.55%) today. Trading £1.69 higher after the open, ETH 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETHGBP as at Jul 03, 2020):
Friday's trading range has been £3.57 (1.96%), that's below the last trading month's daily average range of £6.46. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETHGBP.
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.
Unable to break through the key technical resistance level at 182.84 (R1), the market closed below it after spiking up to 183.61 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 179.67 in the previous session, ETH/GBP found buyers again around the same price level today at 180.04. The last time this happened on Wednesday, ETHGBP actually lost -2.07% on the following trading day.
While the cryptocurrency is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 186.71 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 179.67 where further sell stops might get triggered. Further selling could move prices lower should the market test June's nearby low at 175.19.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for ETH/GBP. Out of 323 times, ETHGBP closed lower 54.49% of the time on the next trading day after the market condition occurred.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 2.54% and XRPUSD closing 0.86% higher. On the flipside the worst performers have been ETHUSD closing -0.59% lower and BTCUSD losing -0.29%. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 7.62% and ICXBTC closing 6.57% higher. The worst performers of the day have been BTGUSD tanking -8.19% and BTGBTC closing -5.0% lower. Read more