• EOS/USD has rebounded from the yearly low at $1.67.
  • The market met resistance around the $3.20 handle before the short term bull run had rolled over.
  • Support moving forward – $2.56, $2.54, $2.33, $2.16, $2.00, $1.90, $1.64.
  • Resistance moving forward – $2.87, $3.00, $3.19, $3.40 ,$3.70, $3.92, $4.00, $4.20, $4.48, $4.93.

EOS has seen a price decline totalling -3.46% over the past 24 hours of trading bringing the current trading price from the cryptocurrency to $2.63, at the time of writing. The cryptocurrency has now seen a -6.91% price fall over the past 7 trading days with a further -9.57% price drop over the past 30 trading days.

Where is EOS ranked?

EOS is now ranked in 5th position as it presently retains a $2.36 billion market cap valuation. The now 18 month old project has seen a serious precipitous -54% price decline over the past 90 trading days as it now trades at a value that is 87% lower than the all time high value.

EOS Price Analysis

EOS/USD Long Term Analysis

EOS/USD – LONG TERM – DAILY CHART

EOS Analysis
https://www.tradingview.com/x/SY3a3ELh/

 

Since our last EOS analysis, we can see that the market had fallen below our outlined symmetrical wedge formation that had been forming during August to November.

The November bloodbath began to spill causing price action for EOS/USD to collapse far below the the lower boundary of the symmetrical wedge formation. We can see that the market had continued to collapse until finding support during the early phase of December at a medium termed downside 1.414 FIbonacci Extension level (drawn in purple) priced at $1.64.

After hitting this area of support the market proceeded to rebound and climb above the $2.00 handle to where it is currently trading at the $2.63 handle.

Let us continue to take a look at EOS/USD over the shorter timeframe and highlight any potential areas of support and resistance moving forward.

EOS/USD Short Term Analysis

EOS/USD – SHORT TERM – 4HR CHART

EOS Analysis
https://www.tradingview.com/x/gwUJZE0f/

 

What’s been going on?

Analysing EOS/USD from the short term perspective above, we can see that after hitting the aforementioned support at $1.64 the market proceeded to rall during the second half of December 2018.

The market continued to rally until hitting resistance at a bearish .382 Fibonacci Retracement level (drawn in red) priced at $3.19, where the short term bull run stalled and reversed. This Fibonacci Retracement is measured from the high seen during November to the low placed in December 2018.

This area of resistance is also bolstered by a short term 1.618 Fibonacci Extension level (drawn in blue) priced at $3.17, making this resistance even harder for the bulls to climb above.

Where are we now?

After rolling over at the resistance around $3.19 the market began to decline. We can see that EOS/USD declined until reaching support below at the short term .5 FIbonacci Retracement level (drawn in green) priced at $2.35.

After hitting this level of support, EOS attempted to rebound but was halted at the short term 1.272 Fibonacci Extension level (drawn in blue) priced at $2.87.

We can also see that the market has now established a short term symmetrical triangle formation as price action is now trading directly along the trend line of the upper boundary of the triangle.

Where can we go from here?

If the bearish pressure continues to drive price action lower, we can expect immediate support toward the downside to be located at the short term .382 Fibonacci Retracement level (drawn in green) priced at $2.54, closely followed by the lower boundary of the symmetrical triangle.

If the sellers continue to penetrate beneath the lower boundary of the triangle, we can expect further support below to then be located at the .5 and .618 Fibonacci Retracement levels (drawn in green) priced at $2.35 and $2.16, respectively.

If EOS/USD breaks back below the $2.00 handle again we can then expect further support below to be located at the .786 Fibonacci Retracement level (drawn in green) priced at $1.90 followed by the downside 1.414 Fibonacci Extension level (drawn in purple) priced at $1.64.

What if the bulls regain control of the market movement?

If the bulls can regain control of the market momentum and begin to push price action for EOS/USD higher, they will need to firstly break above the upper boundary of the symmetrical triangle pattern. If they succeed in doing so, initial resistance toward the upside will be located at the short term 1.272 Fibonacci Extension level (drawn in blue) priced at $2.87, closely followed by the combined resistance at the bearish .382 Fibonacci Retracement level (drawn in red) priced at $3.19.

If the bulls continue to press higher above the $3.20 handle then we can expect more resistance toward the upside to be located at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $3.70. This level of resistance is further bolstered by a medium termed 1.272 FIbonacci Extension level (drawn in purple) priced in the same area.

Further higher resistance can then be expected at the medium termed 1.414 Fibonacci Extension level (drawn in purple) priced at $3.92 followed by resistance at the psychological round number handle at $4.00.

What are the technical indicators showing?

The RSI has recently broken below the 50 handle on the 4HR time frame which indicates that there could be some more downward pressure within the short term. However, the RSI remains above the 50 handle on the daily which indicates that the bulls still are fighting to prevent price action from dipping further lower.

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