EOS is struggling to rally away from the worst levels of the month, as Bitcoin and a host of top altcoins remain under downside pressure.
EOS technical analysis shows that the cryptocurrency could slide towards extended technical support, around the $2.50 level, before a meaningful bounce occurs.
EOS/USD medium-term price trend
EOS has failed to stage a meaningful rally over recent days, with the EOS/USD pair breaking below its 200-day moving average and turning technically bearish for the first time since mid-January earlier this week.
So far, the cryptocurrency has lost more than 40 per cent of its value from its 2020 price peak, and is on course for its third consecutive losing week.
EOS technical analysis shows that the cryptocurrency is testing critical medium-term support and needs to quickly bounce from current levels to avoid a deeper price slump.
The decline has recently found strong support from the 78.6 Fibonnaci retracement of the 2019 low to the current 2020 high, around the $2.87 level.
A break below the $2.87 level could cause a plunge towards the $2.50 and possibly the $2.20 support level.
Traders should note that a bullish double-bottom is in play across the daily time frame, and remains intact while the price trades above the $2.20 level.
EOS/USD short-term price trend
EOS/USD analysis shows that the cryptocurrency has a bearish short-term bias while the price trades below the $4.10 level.
The lower time frames currently show that the EOS/USD pair is now trading in the middle of a large falling price channel.
The bottom of the falling price channel is found at the $2.50 level, and remains a viable target if the price starts to slide below the current monthly low.
The top of the falling price channel is located around the $3.40 level. According to the size of the pattern, a bullish breakout above the $3.40 level could provoke a rally towards the $4.30 level.
EOS/USD technical summary
EOS/USD analysis shows that bulls need to defend the current monthly low to avoid a stronger decline towards the $2.50 level and possibly lower. A breakout above the $3.40 level could see the cryptocurrency testing above the $4.00 level.