Market Overview for Euler/USDC (EULUSDC) on 2025-11-07

Summary
• Euler/USDC opened at $5.763 and closed at $5.632 with a high of $5.852 and a low of $5.534.
• Price action showed bearish momentum, with a significant drop after 20:00 ET.
• Volume was concentrated during the overnight session, indicating potential selling pressure.

Market Overview for Euler/USDC (EULUSDC)

Euler/USDC (EULUSDC) opened at $5.763 on 2025-11-07 at 12:00 ET - 1 and closed the 24-hour period at $5.632 by 12:00 ET. The price reached a high of $5.852 and a low of $5.534 during the session. Total volume amounted to 64,250.51 units, with a notional turnover of approximately $358,478 (based on the given volume and closing prices).

The price action over the 24-hour period reflected a bearish bias, marked by a sharp decline after 20:00 ET. The pair tested key support levels during the overnight hours, with notable bearish engulfing patterns forming between 19:30 and 20:45 ET, indicating strong selling pressure. A Doji pattern appeared near the 05:00 ET timeframe, suggesting indecision before further downward movement.

Structure & Formations

Key support levels were identified at $5.600 and $5.500, with resistance near $5.750 and $5.850. A large bearish engulfing pattern at 19:30 ET marked a turning point in sentiment. The formation of a Doji at 05:00 ET indicated potential short-term stabilization, though the follow-through was weak, and the price continued downward.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages confirmed the bearish trend, with price below both. On the daily chart, the 50-period moving average appears to be forming as a short-term resistance level, while the 200-period MA is likely a key long-term floor.

MACD & RSI

The MACD turned negative after 20:00 ET and remained in bearish territory for the remainder of the session, confirming the downtrend. The RSI fell into oversold territory below 30, indicating that the pair may be due for a short-term rebound, although without a reversal pattern, a sustained bounce is unlikely.

Bollinger Bands

Volatility expanded significantly after 19:30 ET, with price falling well below the lower band. The wide bands suggest increased market anxiety and a potential continuation of the decline.

Volume & Turnover
Volume spiked during the late evening and overnight hours, aligning with the sharp selloff. Turnover was most intense between 19:30 and 20:45 ET, suggesting liquidation activity by larger participants. A divergence was noted between volume and price near the close, with turnover declining despite continued selling pressure.

Fibonacci Retracements

Fibonacci retracements applied to the recent swing high ($5.852) and low ($5.534) show the 61.8% level at $5.602, a critical area to watch for a potential bounce or further breakdown. The 38.2% level is at $5.689, which could serve as a short-term resistance.

Backtest Hypothesis

To refine the trading signal, a backtest can be run using the bearish engulfing pattern identified at 19:30 ET. The hypothesis would test the effectiveness of entering short positions after a confirmed bearish engulfing candle, with stops placed above the 50-period moving average and targets aligned with the 61.8% Fibonacci retracement level. This strategy would be evaluated from January 2022 to the present to determine its historical efficacy in capturing bearish trends in EULUSDC.