- EOS must overcome the resistance at $8.5 to pave the way for recoil towards $9.0.
- There are a couple of support areas at $8.0 and $7.8 respectively.
EOS rose towards $9.0 last week but the uptrend was short-lived leading to lower corrections. The price plunged below $8.5 but managed to find a support above $8.0. There was a pullback after testing the next support target at $7.8. EOS traded above the 61.8% Fib retracement level between the highs of $9.0 and $7.98 lows at $8.50. The upside has, however, been capped below $8.5.
Currently, the immediate support is at $8.10 while the upward retracement at the end of the trading session yesterday lost momentum slightly above $8.40. Like many of the cryptocurrencies in the market, EOS decline further on Monday morning below the 23.6% Fib retracement level with the last swing high of $9.0 and lows of $7.98.
EOS/USD has resumed an uptrend above $8.10 but it is facing increasing selling hindrance at the 23.6% Fibo. Significantly, there is a classic contracting triangle forming on the chart. This means that EOS is approaching a breakout. However, to have a sustained upward movement, it must overcome the resistance at $8.4 and $8.5 respectively. The next significant resistance sits at $9.00. It is likely that EOS could revisit $10.00 if it finds a support above $9.0.
However, if the price breaks below the contracting triangle, EOS could witness an extended break down below $8.0 to test the next support target at $7.60. Moreover, if this happens $7.00 is still within reach.
EOS/USD 30′ chart
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