Market Overview for Eurite/Tether (EURI/USDT) on 2025-10-11

• EURI/USDT dropped sharply from $1.16 to $1.1127 amid heavy volume spikes before stabilizing around $1.138–$1.140.
• Volatility expanded significantly between 21:30 and 22:45 ET with a deep retracement of nearly 9% from the 21:30 high.
• A large bearish engulfing pattern formed at the top of the 1.1608–1.1595 range, suggesting a short-term top.
• RSI bottomed below 30 near $1.138 but failed to confirm a strong rebound, indicating potential oversold exhaustion.
• Volume surged during the breakdown, suggesting conviction in the downward move.

Eurite/Tether (EURI/USDT) opened at $1.1608 on 2025-10-10 at 12:00 ET, reached a high of $1.1608, a low of $0.9368, and closed at $1.1383 on 2025-10-11 at 12:00 ET. Total volume was 13,230,927.9, and turnover (notional value) amounted to approximately $14,778,178.30 over the 24-hour period.

The price structure showed a clear breakdown from a consolidation range around $1.1600, followed by a sharp selloff that pierced critical psychological levels. The most notable bearish signal came in the candle ending at 2025-10-10 213000, where price gapped down from $1.1522 to $0.9554 and closed at $1.1387. This candle formed a large bearish engulfing pattern on the 15-minute chart, confirming the breakdown. Further confirmation came in the subsequent candles with strong bearish momentum and a clear absence of bullish reversal attempts. A strong support level appears to have formed around $1.138–1.140, where price consolidated after the selloff.

Moving averages on the 15-minute chart showed a clear bearish crossover with the 20-period MA dropping below the 50-period MA during the breakdown. The 50-period MA on the daily chart remains above the price, suggesting medium-term bearish bias. MACD turned strongly negative during the selloff, with bearish divergence forming between price and histogram. RSI reached oversold levels near $1.138 but did not produce a convincing bullish reversal, indicating weak conviction in the bounce. Bollinger Bands showed a significant expansion during the selloff, and price is now consolidating near the lower band, suggesting potential for a temporary rebound or a continuation lower if support breaks.

The Fibonacci retracement levels for the swing high of $1.1608 and the swing low of $0.9368 indicate key levels of interest: the 38.2% retracement at $1.1428 and the 61.8% at $1.1277. Price currently consolidates near the 38.2% level, which could either act as resistance or support depending on future momentum. If price breaks below $1.1383, the 61.8% level becomes a critical target. On the daily chart, the 200SMA remains above $1.16, so any bullish attempts from current levels are likely to face strong resistance from the broader bearish trend.

Backtest Hypothesis

A potential short-term trading strategy could involve entering a short position on the confirmation of a bearish engulfing candle, such as the one observed on the 15-minute chart at 2025-10-10 213000, with a stop-loss placed above the high of the candle. A target could be set at the 61.8% Fibonacci level ($1.1277) for a potential 1.04% move. For a long position, a breakout above $1.1428 with volume confirmation could be used as an entry trigger, with a stop-loss placed just below $1.1383. These signals align with the observed breakdown and consolidation dynamics, leveraging key technical indicators for both short and long bias.