Potential false downside breakout: EOS price analysis
11:45, 7 July 2020
EOS is attempting to recover higher in early week trading, following a false downside breakout below the $2.30 support level.
EOS technical analysis shows that the cryptocurrency could start to rally towards the $3.20 level if the $2.30 support level continues to hold.
EOS/USD medium-term price trend
EOS is starting to recover higher, as the EOS/USD pair tracks Bitcoin and a number of other top cryptocurrencies higher.
EOS price analysis shows that a breakout above the $2.50 resistance area could spark a rally towards the $3.20 area over the medium term.
A bearish breakout from a neutral trading pattern, around the $2.50 level, took place last month, placing downside pressure on the EOS/USD.
Bulls are starting to recover the EOS/USD pair back towards the $2.50 level, further increasing the notion that a false downside breakout may have taken place.
If bulls can anchor the EOS/USD pair back inside the triangle pattern, around the $2.50 level, then a rally towards the top of the triangle, around the $3.20 level, could take place this month.
The daily time frame also shows that the $2.80 and $3.20 levels offer strong upside resistance.
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EOS/USD short-term price trend
EOS/USD price analysis shows that the cryptocurrency only has a bullish short-term bias while the price trades above the $2.55 level.
The lower time frames currently show that sellers failed to ignite a bearish head-and-shoulders pattern, following the recent decline below neckline support, around the $2.30 level.
Technical analysis shows that bulls need to rally the price above the $2.90 level to invalidate the bearish price pattern.
According to the size of the potential invalidation, the EOS/USD pair could soar towards the $3.50 level.
Repeated failure to hold the price under the $2.30 support level is likely going to increase the chances of a strong counter-rally in the EOS/USD pair.
EOS/USD technical summary
EOS/USD technical analysis shows that bulls need to hold the price above the $2.30 to $2.50 area to encourage the notion that a false downside breakout has recently taken place.