ETHUSD closes below its opening price unable to hold early session gains
Ethereum/US Dollar Index (ETHUSD) Technical Analysis Report for Dec 08, 2018 | by Techniquant Editorial Team
ETHUSD finished Saturday at 92.26 edging lower $0.90 (-0.97%). Trading $4.94 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 missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ETHUSD as at Dec 08, 2018):
Saturday's trading range has been $13.74 (14.68%), that's slightly below the last trading month's daily average range of $14.20. 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 ETHUSD.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on November 23rd, ETHUSD lost -8.25% on the following trading day.
Prices are trading close to the key technical resistance level at 100.96 (R1). After having been unable to move above 97.75 in the prior session, Ether ran into sellers again around the same price level today, missing to move higher than 98.55.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 82.08 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ETH/USD. Out of 9 times, ETHUSD closed higher 66.67% 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 77.78% with an average market move of 14.36%.
With three of the other Major Cryptocurrencies closing higher and three closing lower today, the winners of the day are EOSUSD surging 6.86% and XRPUSD gaining 2.28%. On the flipside the worst performers have been BCHUSD closing -4.7% lower and LTCUSD losing -1.04%. Looking at the Minor Cryptocurrencies, the winners of the day have been BTCCNY surging 21.7% and ETHCNY closing 18.49% higher. The worst performers of the day have been BCHBTC tanking -6.69% and IOTBTC closing -4.13% lower. Read more