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  • EOS technical analysis in the daily range signals a possible sideways trading action.
  • EOS/USD recovery above $5.0 banks on the ability of the shoulders pattern to launch in an upward trajectory.

EOS just like other major cryptocurrencies are facing increased selling activities at the beginning of the European session on Tuesday. Correction of the losses posted on Monday pulled EOS/USD above $3.5. Unfortunately, the bullish action fizzled out under $3.8 leaving $4.0 untested.

In the meantime, the price is exchanging hands at $3.69 while dealing with resistance at the descending channel that has been forming since February 13 when EOS/USD plummeted from highs around $5.5.

In the event the channel resistance stays unbroken, EOS price is likely to settle in a sideways range between $3.5 and $3.8 according to various technical indicators. For instance, the RSI movement is leveling above 40 following a shallow recovery from levels close to 30.

On the other hand, the MACD, signals that bearish pressure cannot be ignored as observed by the bearish divergence. The indicator is also stuck in the negative zone and has a visible bearish bias.

EOS/USD silver lining”

Amid the increased seller influence, EOS is trading above a head-and-shoulders pattern likely to push the price above the critical resistance at $4.0. A breakout of this magnitude coupled with the right volume could catapult EOS above $5.0.

EOS/USD daily chart
EOS/USD price chart