- EOS rejected several lifesaving support areas at $6.4, $6.00 and $5.8 canceling monthly gains.
- A critical support is currently established at $5.60 but a break above $6.0 could put EOS back on track towards $7.0.
Cryptocurrencies have suffered a huge blow following what the experts are calling a bull trap. EOS, for instance, had been rising in value supported by positive news. EOS referendum was a big boost to the price that corrected high towards $7.00 instead forming a high at $6.81. The bearish reaction that followed had been anchored at the 61.8% Fib level with the last drop from $6.81 to a low of $5.75. The upside has been limited at $6.6msince the week started.
Unfortunately, that is the sad end to EOS incredible performance since the declines in August. The bears increased their grip today leading to technical levels being broken at the 61.8% Fibo (broken support), the hourly 50SMA and the trendline support at $6.48.
It is as if the bulls were dancing at the edge of a high cliff and the bears’ slight poke sent the price spiraling like deadweight in the air. Further breakdown broke the support at the 23.6% Fib level at $6.00. The buyers entered at $5.65 (September low), besides EOS is seeking support at $5.80. There is a weak bullish trend ongoing on the chart but selling pressure is too high to allow significant upwards movement to the resistance at $6.00. The sellers seem to be exhausted as the technical signals turn positive (slightly) and buying entries are bound to increase at this positioned.
The outlook of the chart is slightly positive with the initial resistance at $6.00, the next resistance is at the broke support at $6.40 (61.8% Fibo while the critical level at $6.81 will prevent movement towards $7.00 in the medium-term. On the flip side, the initial support is at $5.60 while a stronger support is observed at $5.00 – $4.80.
EOS 1-hour chart