EOS price analysis: false upside breakout
11:45, 26 August 2020
EOS is starting to come back under downside pressure, as the recent rally towards the $4 level appears to be a false breakout.
EOS technical analysis shows that the popular cryptocurrency may start to test below the $3 level to attract fresh buying interest.
EOS/USD medium-term price trend
EOS is at risk of heavy losses as the recent upside momentum in the cryptocurrency and strong buying interest starts to fade.
EOS price analysis highlights that the cryptocurrency has a negative medium-term trading bias while trading below the $3.20 level.
The daily time frame shows that the cryptocurrency is trading inside a rising price channel, between the $4 and $2.60 levels.
According to technical analysis the EOS/USD pair could fall towards the bottom of the rising channel if breakout under the $3.20 level takes place.
Medium-term bulls are expected to buy into meaningful dips, in anticipation of a rally back towards the top of the rising channel.
The $4.80 and $5.50 level are the strongest forms of technical resistance above the $4 level.
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EOS/USD short-term price trend
EOS/USD price analysis shows that the cryptocurrency has a short-term bearish bias while the price trades below the $3.20 level.
The four-hour time frame shows that a bearish head and shoulders pattern has formed, following the recent rejection from just below the $4 area.
According to the size of the bearish pattern, the EOS/USD pair could fall towards the $2.20 level over the short-term horizon.
Traders should note that the neckline of the bearish pattern is located around the $2.90 area.
Key short-term technical support below the $2.20 level is located around the $2 and $1.80 levels.
EOS/USD technical summary
EOS/USD technical analysis shows that a bearish head and shoulders pattern is warning of a coming decline in the cryptocurrency.
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