ETHUSD breaks below key technical support level
Ethereum/US Dollar Index (ETHUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETHUSD ended Monday at 393.11 losing $13.19 (-3.25%). Closing below Sunday's low at 403.54, the market confirmed its breakout through the prior session low after trading up to $20.90 below it intraday.
Daily Candlestick Chart (ETHUSD as at Oct 26, 2020):
Monday's trading range has been $28.75 (7.08%), that's far above the last trading month's daily average range of $16.73. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETHUSD.
Prices broke below the key technical support level at 394.28 (now R1), which is likely to act as resistance going forward. The last time this happened on October 16th, ETHUSD actually gained 0.81% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ETH/USD. Out of 197 times, ETHUSD closed higher 59.39% 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 56.85% with an average market move of 4.08%.