Crypto Analysis

EOS Reaches Crucial Juncture, Price Action Suggests Upside Break

EOS price declined recently after testing the $3.00 resistance area against the US Dollar. The $2.20 support holds the key for the next move versus USD and BTC.

Key Talking Points

  • EOS price is placed nicely above a major support at $2.20 (Data feed of Kraken) against the US Dollar.
  • Recently, there was a break below a key bullish trend line with support at $2.78 on the 4-hours chart of the EOS/USD pair.
  • There seems to be an inverse head and shoulders pattern forming with resistance at $2.50.

EOS Price Analysis

This past week, there was a solid upward move in EOS price above the $2.40 and $2.50 resistance levels against the US Dollar. The EOS/USD pair gained momentum above the $2.80 resistance and traded close to the $3.00 handle.

EOS Price Analysis Chart

The chart above indicates that EOS price traded as high as $2.97 and later started a sharp downside correction. It declined below the $2.60 and $2.50 support levels to move into a short term bearish zone. There was even a close below the $2.50 support and the 100 simple moving average (4-hours).

More importantly, there was a break below a key bullish trend line with support at $2.78 on the 4-hours chart of the EOS/USD pair. The decline was such that the price tested the main support near the $2.20 level.

A low was formed at $2.20 and the price later corrected higher. It moved above the 23.6% Fib retracement level of the last drop from the $2.97 high to $2.20 low. However, buyers failed to gain traction above the $2.50 resistance area.

At the outset, it seems like an inverse head and shoulders pattern is forming with resistance at $2.50. Besides, the 50% Fib retracement level of the last drop from the $2.97 high to $2.20 low is near the $2.58 level and the 100 simple moving average (4-hours).

Therefore, a break above $2.50, $2.58, and the 100 simple moving average (4-hours) could open the doors for a sharp upward move in EOS towards $2.80 and $3.0. If not, there are chances of a downside break below $2.20 and $2.00.

The market data is provided by TradingView.

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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