ETHGBP closes above its opening price after recovering from early selling pressure
Ethereum/British Pound Index (ETHGBP) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ETHGBP ended Sunday at 422.54 gaining £5.62 (1.35%) on high volume. Today's close at 422.54 marks the highest recorded closing price since June 9, 2018. Trading up to £13.55 lower after the open, Ethereum managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 417.20, Ether confirmed its breakout through the prior session high after trading up to £15.34 above it intraday.
Daily Candlestick Chart (ETHGBP as at Nov 22, 2020):
Sunday's trading range has been £29.17 (7.0%), that's far above the last trading month's daily average range of £18.79. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ETHGBP.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish High-Wave Candle showed up on September 4th, ETHGBP actually lost -13.49% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 352.08.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for ETH/GBP. Out of 53 times, ETHGBP closed higher 58.49% 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 73.58% with an average market move of 16.89%.