- EOS has a bearish short-term and medium-term trading outlook
- The four-hour time frame shows that a bullish inverted head and shoulders pattern has been invalidated
- The daily time frame shows that a bearish wedge pattern breakout has occurred
EOS is under heavy downside pressure, following Monday broad-based cryptocurrency market sell-off. EOS/USD now trades at its weakest level since Nov. 25 this year.
The EOS/USD pair has lost just under eight percent of its value since the start of the trading week and is trading down by over 30 percent on a four-week basis.
The cryptocurrency looked increasingly vulnerable to losses as it failed to rally away from the $2.50 level last week. Bulls failed multiple times to overcome the $2.80 resistance level.
The four-hour time frame shows that an inverted head and shoulders pattern has been invalidated, with yesterday’s drop meeting the overall invalidation target.
The daily time frame shows that a wedge pattern has been developing over the last few weeks, with price breaking under the lower end of the wedge pattern on Monday.
Looking at potential downside targets, a break under the $2.20 level could expose the EOS/USD pair to further selling towards the $2.00 level. At present the cryptocurrency shows few signs of price stabilization.
The Relative Strength Index on the daily time frame is bearish and is now oversold. The MACD indicator on the mentioned time frame is currently generating a sell signal.
EOS/USD H4 Chart by TradingView
Upside Potential
The four-hour time frame shows that key technical resistance is now located at the $2.50 and $2.80 levels.
Key technical resistance over the medium-term is located at the $3.00 and $3.50 levels.
EOS / USD Daily Chart by TradingView
Downside Potential
The four-hour time frame is showing that the EOS/USD pair has strong medium-term technical support around the $2.20 and $2.00 levels.
Long-term support for the ES/USD pair is located at the $1.70 and $1.40 levels.
Summary
EOS has become the latest casualty of the bearish downtrend currently underway in the cryptocurrency market.
The EOS/USD pair remains vulnerable to medium-term technical selling while trading under the $2.50 level. Watch the $2.20 level for signs of a reversal or a continuation of recent selling.
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DISCLOSURE
Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.
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