Market Overview for Ethereum/Eurite (ETHEURI) on 2025-11-03

• Ethereum/Eurite (ETHEURI) closed lower after a volatile 24-hour session, forming a bearish reversal pattern near a key resistance.
• Momentum indicators like RSI and MACD suggest oversold conditions, pointing to possible near-term bounce potential.
• Volatility expanded during the session, with price breaking below the lower Bollinger Band and testing Fibonacci support.
• Volume spiked during the early morning hours, aligning with price declines, indicating possible short-term exhaustion.
• A bearish engulfing pattern emerged near resistance, suggesting possible shorting opportunities for traders.

Ethereum/Eurite (ETHEURI) opened at $3,341.42 on 2025-11-02 at 12:00 ET and closed at $3,213.06 by the same time on 2025-11-03. The pair hit a high of $3,395.19 and a low of $3,120.0 during the 24-hour window. Total traded volume was approximately 117.48 units, with notional turnover reaching around $401,620. The price action shows a clear bearish bias, with a significant breakdown from the 15-minute chart’s resistance into a new 24-hour low.

Key structural features include a bearish engulfing pattern near the $3,341.42 level and a breakdown below a 20-period and 50-period moving average on the 15-minute chart. The 20-period MA is currently at $3,265.77, while the 50-period MA sits at $3,287.15—both acting as dynamic resistance levels. The breakdown suggests a shift in momentum and could trigger further downside to the $3,100.0 level, a prior support turned potential target.

Momentum indicators support a bearish bias. The RSI has entered oversold territory around 27, suggesting potential for a short-term bounce but not a reversal. The MACD is in negative territory, with the signal line crossing below the zero level, reinforcing the downward trend. Volatility has expanded, as seen in the widening of Bollinger Bands, with the current price at $3,130.6 sitting near the lower band, indicating exhaustion. Fibonacci retracements highlight the 61.8% level at $3,220.0 as a critical near-term support.

Volume increased significantly during the early morning hours as price declined to the $3,120.0 level. This divergence between falling prices and rising volume suggests short-term bearish conviction. However, notional turnover has since declined, indicating possible exhaustion in the move lower. A potential bounce could form if the next candlestick closes above the 61.8% Fibonacci level at $3,220.0. Traders should remain cautious, as the breakdown could attract more bearish activity in the near term.

Backtest Hypothesis
The bearish engulfing pattern near $3,341.42 on the 15-minute chart could serve as a short-entry signal under the proposed backtesting strategy. If we were to short at the close of the engulfing candle ($3,341.42) and exit at the next candle’s intraday low, the return would be approximately -1.16% (exit at $3,305.22). This aligns with the strategy of exiting at the next candle’s low. Over the past 24 hours, this pattern occurred twice, both with bearish signals. A full statistical backtest would provide more insight into the efficacy of the rule, including hit rate and average return.