- EOS spikes 8% leading marker recovery following two days of low trading activity.
- Reaction to the double-top pattern could send EOS back below $3.0.
EOS is the market leader moments before the end of the evening (GMT) session on Tuesday 12. The crypto has spiked with gains in the excess of 8%. As discussed in earlier price analysis, EOS short-term outlook was strongly bullish and a predicted a break above $3.0 has finally occurred.
At the time of press, EOS/USD is trading $30.013. The bullish candlestick does not show any signs of slowing down. Besides, the Moving Average Convergence Divergence (MACD) has revamped the direction upwards from 0.040901 (intraday low). Other technical indicators like the 50-day Simple Moving Average, which is advancing higher above the 100-day SMA shows that the bulls have the power to push for gains and possibly establish support above $3.0.
In the event, EOS retreats below $3.0 and begins to cancel the gains, it will find support at $2.8 and $2.9. Extended declines to be halted at $2.5 (next support level) while the major support lies at $2.2.
Reaction to the double-top pattern on the 3-hour timeframe chart means that a bearish correction is looming. The bulls must put their best foot forward and prevent a reversal below $3.0. As long as EOS can keep above $3.0, further movement to levels close to $3.5 is possible.
EOS/USD 3-hour chart