ETHUSD closes below its opening price unable to hold early session gains
Ethereum/US Dollar Index (ETHUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ETHUSD finished Saturday at 206.70 edging lower $0.58 (-0.28%) on low volume. Trading $3.95 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 previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETHUSD as at May 23, 2020):
Saturday's trading range has been $6.41 (3.09%), that's far below the last trading month's daily average range of $12.20. 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.
After moving higher in the previous session, Ether closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Hikkake Pattern showed up on May 17th, ETHUSD actually gained 3.74% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 216.92 where further buy stops might get triggered. As prices are trading close to May's high at 219.23, upside momentum could accelerate should Ethereum mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for ETH/USD. Out of 132 times, ETHUSD closed lower 58.33% of the time on the next trading day after the market condition occurred.
With four out of the other six Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more