- EOS bulls lose grip as bears stream in to trim the gain.
- EOS must defend short-term support at $0.34 to avoid testing $0.3.
The cryptocurrency market bullish momentum has died down. The gains came after a week of stability. Prior to the gains, EOS had plunged to lows around $2.2. The bullish correction on February 8 elevated EOS to highs slightly above $2.8.
For seven days, EOS was stable between a core support zone at $2.2 – $2.4. The bullish wave in the market yesterday broke above $3.0 paving the way for correction to the upside in several successful candlesticks. EOS is continuing with the movement to the north after clearing the resistance at $3.4.
Looking at the 4-hour chart, the bulls seem to be losing their grip and EOS is likely to trim gains towards the resistance turned support at $3.4. The Relative Strength Index (RSI) in the same range has changed direction downwards from the highs around 89.47 (levels of February 8). The Direction Movement Index (DMI) on the same chart is pointing downwards to show that the bearish trend is gaining traction.
I expect EOS to deflate towards $3.4 short-term support. If it slides below this level, there is a chance that it could test $3.0 (demand zone) and a reversal will take place.
EOS/USD 4-hour
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