ETHJPY breaks below Saturday's low
Ethereum/Japanese Yen Index (ETHJPY) Technical Analysis Report for May 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHJPY ended Sunday at 21609.67 losing ¥603.23 (-2.72%). Trading ¥500.30 higher after the open, ETH/JPY was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Saturday's low at 22091.76, ETH confirmed its breakout through the prior session low after trading up to ¥484.81 below it intraday.
Daily Candlestick Chart (ETHJPY as at May 24, 2020):
Sunday's trading range has been ¥1106.25 (4.98%), that's slightly below the last trading month's daily average range of ¥1250.98. 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 ETHJPY.
One bearish candlestick pattern matches today's price action, the Black Candle.
Ether closed back below the 20-day moving average at 21754.12. The cryptocurrency ran into sellers again today around 22713.20 for the third trading day in a row after having found sellers at 22730.49 in the previous session and at 22531.34 two days ago. The last time this happened on Wednesday, ETHJPY lost -5.42% on the following trading day.
Ethereum shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 22730.49 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 20657.19 where further sell stops could get triggered. As prices are trading close to May's high at 23447.12, upside momentum might speed up should the market mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ETH/JPY. Out of 157 times, ETHJPY closed higher 58.60% 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 54.78% with an average market move of 6.63%.
With six out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are BTCUSD losing -5.09% and BCHUSD closing -4.75% lower. On the flipside the best performer has been ETCUSD closing 0.15% higher. Looking at the other Minor Cryptocurrencies, the winners of the day have been ETCBTC surging 5.6% and ETHCNY closing 4.3% higher. The worst performers of the day have been BCNUSD tanking -13.04% and LTCGBP closing -11.46% lower. Read more