Market Overview: Ethereum/Eurite (ETHEURI) – 2025-10-05

• ETHEURI traded in a tight range early before breaking higher, peaking at $3,877.65.
• Volatility expanded sharply overnight, with price surging 4% on increasing volume.
• A bullish engulfing pattern emerged at 08:15 ET, confirming a potential trend reversal.
• MACD crossed above zero, and RSI pushed into overbought territory, signaling strong upward momentum.
• Bollinger Bands showed significant expansion, suggesting heightened volatility and potential continuation.

Price Behavior and Volume Dynamics

Ethereum/Eurite (ETHEURI) opened at $3,781.21 on 2025-10-04 at 12:00 ET, reached a high of $3,905.85, a low of $3,772.06, and closed at $3,856.03 on 2025-10-05 at 12:00 ET. Total volume for the 24-hour period was 123.7454, and total turnover was $470,487.38. Price action showed a strong reversal from a bearish consolidation to a bullish breakout following a key candle at 08:15 ET.

A bullish engulfing pattern formed on the 15-minute chart at the peak of the consolidation, confirming a shift in sentiment. This pattern appears to have been accompanied by a volume spike, supporting the likelihood of a continuation in the current upward direction.

Moving Averages and Momentum

The 15-minute ETHEURI chart showed price closing above both the 20-period and 50-period moving averages, with the 20 MA acting as a dynamic support level during the early consolidation phase. The 50-period MA rose sharply after 03:00 ET, suggesting increasing conviction in the bullish trend.

On the daily chart, ETHEURI sits above the 50-day and 100-day MAs but below the 200-day MA, which remains a significant long-term resistance at $3,920. The 50-day MA is currently at $3,830, offering short-term support. A break above the 50-day MA could confirm a stronger bullish bias.

MACD and RSI

The MACD crossed above zero at 03:15 ET, and the histogram has been expanding positively since then. RSI reached a high of 72, entering overbought territory for much of the session. While this suggests a potential pullback, the sustained price action above key moving averages and the volume profile indicate strong buying pressure that may delay a correction.

Bollinger Bands and Volatility

Volatility increased significantly after 02:45 ET, as Bollinger Bands expanded from a narrow to a wide range. Price remained above the upper band for the first time since the previous week, suggesting a potential continuation of the upward move. A retest of the lower band at $3,770 could offer an entry point for bulls if volume confirms the bounce.

Fibonacci Retracement Levels

Applying Fibonacci levels to the recent 15-minute swing from $3,772.06 to $3,905.85, key levels include 61.8% at $3,847.40 and 78.6% at $3,886.15. Price is currently consolidating near the 61.8% retracement, suggesting potential for a short-term correction or continuation. On the daily chart, the 61.8% retracement from the recent swing high at $3,905.85 to the low at $3,772.06 aligns with the 200-day MA, which remains a critical psychological level.

Backtest Hypothesis

Given the presence of a bullish engulfing pattern, strong MACD and RSI momentum, and a key Fibonacci level being tested, a potential backtest could involve entering long at a 0.5% stop above the open of the engulfing candle and exiting at the 61.8% Fibonacci level with a 2.5% stop below the engulfing candle’s low. This setup aims to capture the continuation of the bullish reversal while managing risk. Such a strategy could be optimized by including a trailing stop as volatility increases and momentum remains intact, potentially yielding a favorable risk-reward profile.