EOS price analysis: buyers need to break $3.50 resistance level
17:17, 6 August 2020
EOS has started to turn lower alongside the broader cryptocurrency market, following a heavy technical rejection from the $3.50 level.
EOS technical analysis shows that bulls need to clear the major trendline resistance on the daily time frame to encourage a rally towards the $4.50 level.
EOS/USD medium-term price trend
EOS is at risk of a protracted drop below the $3.00 level, as the cryptocurrency starts to lose upside momentum.
EOS price analysis indicates that the cryptocurrency needs to break the $3.50 level to accelerate the ongoing bullish trend.
That daily time frame shows that the cryptocurrency is trapped within a large triangle pattern, between the $2.40 and $3.50 levels.
A strong rejection from trendline resistance, around the $3.50 level, has caused a strong pullback in the EOS/USD pair.
Bulls may look to enter back into the EOS long trade if the $2.50 support level holds on a pullback. The $2.30 and $2.00 levels offer strong medium-term support below the triangle pattern.
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EOS/USD short-term price trend
EOS/USD price analysis shows that the cryptocurrency only has a short-term bullish bias while the price trades above the $2.95 level.
The one-hour time frame shows that a bearish head-and-shoulders pattern has formed, following the recent rejection from the $3.50 level.
According to the size of the bearish pattern, the EOS/USD pair could fall towards the $2.50 level over the short-term horizon.
Watch out for more short-term weakness once the price moves under neckline support, around the $2.95 level.
EOS/USD technical summary
EOS/USD technical analysis shows that the cryptocurrency may be preparing to drop towards the $2.40 to $2.50 level.
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