ETHUSD runs into sellers again around 419.47
Ethereum/US Dollar Index (ETHUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
ETHUSD ended the week 8.23% higher at 409.57 after losing $4.93 (-1.19%) today. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ETHUSD as at Oct 23, 2020):
Friday's trading range has been $17.54 (4.23%), that's slightly above the last trading month's daily average range of $15.89. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETHUSD.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on October 15th, ETHUSD lost -3.24% on the following trading day.
Prices are trading close to the key technical support level at 395.22 (S1). Prices are trading close to the key technical resistance level at 421.25 (R1). After having been unable to move above 421.25 in the previous session, Ethereum ran into sellers again around the same price level today, failing to move higher than 419.47.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 372.63.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 421.25 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for ETH/USD. Out of 74 times, ETHUSD closed higher 62.16% 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 62.16% with an average market move of 10.40%.