Market Overview: Eurite/Tether (EURIUSDT) 24-Hour Summary

• EURIUSDT traded between 1.1551 and 1.1644 over 24 hours, closing near 1.1556 after opening at 1.1607.
• Strong downward momentum emerged post 10:00 ET, with a 15-minute candle gap and bearish engulfing patterns.
• Volatility spiked during the 5–6 AM ET hours before consolidating near key Fibonacci levels.
• Turnover increased sharply during selloffs but failed to confirm strong bearish continuation.
• RSI and MACD indicate oversold conditions, suggesting potential near-term reversal.

Eurite/Tether (EURIUSDT) opened at 1.1607 on October 8 at 12:00 ET and closed at 1.1556 by October 9 at 12:00 ET. The 24-hour trading range was between 1.1551 and 1.1644. Total volume amounted to approximately 854,928.8 units, with notional turnover reaching ~1.035 million EURI (calculated by summing volume × close price per candle).

The price formation over the last 24 hours showed a bearish bias, with a clear breakdown from key resistance levels around 1.1620–1.1630. A notable bearish engulfing pattern appeared during the 22:30–23:00 ET hour, signaling a potential reversal from consolidation. Later, a doji and a spinning top appeared near 1.1570, suggesting hesitation in the short term. Bollinger Bands reflected increasing volatility during the 5–6 AM ET window, with the price moving outside the lower band—a sign of a potential overextended bearish move.

The 20-period and 50-period moving averages on the 15-minute chart showed a bearish crossover as the 20 MA dipped below the 50 MA after 6 AM ET. On the daily chart, the 50-period MA at ~1.1615 acted as a key resistance level, which the price failed to cross. The 200-period MA at ~1.1595 acted as a temporary support. RSI hit 26 at 9 AM ET, indicating oversold conditions, while the MACD crossed into negative territory with a bearish divergence forming between price and momentum.

Bollinger Bands continued to show a contraction phase near 1.1570–1.1580, suggesting a potential breakout could be imminent. Fibonacci retracement levels from the 1.1551–1.1644 swing indicated 1.1595 (38.2%) and 1.1620 (61.8%) as critical levels. Price stalled near 1.1610 in the morning before breaking below, confirming bearish control. Volume and turnover diverged slightly during the final 30-minute candle, with volume declining but price continuing to fall—suggesting caution.

The market appears to have reached a key inflection point, with bearish momentum showing signs of fatigue. If price remains below 1.1595, a test of 1.1551–1.1560 could follow. However, a rebound above 1.1610 could signal a short-term reversal. Investors should remain cautious of potential volatility due to mixed volume signals and divergent momentum indicators.

Backtest Hypothesis

The backtesting strategy outlined involves entering a short position when price breaks below a 20-period moving average and RSI dips below 30, with a stop-loss above the 50-period MA and a target at the 61.8% Fibonacci level. The recent price action aligns with this setup, particularly during the 1–2 AM ET period when RSI approached 26 and the 20 MA crossed below the 50 MA. A successful execution of this strategy would have captured the selloff until 1.1556. However, the volume divergence near the close suggests a potential countertrend bounce may develop, challenging the strategy’s assumptions.