EOS Freefall Continues, Approaching $2 Support

Azeez Mustapha

Eos, EOSUSD, Cryptocompare chartEOS Chart by TradingView

EOS Price Medium-term Trend: Bearish

  • Supply zones: $5.00, $6.00, $8.00
  • Demand zones: $2.00, $1.00, $0.50

EOS continues in a bearish trend in its medium-term outlook. The bears' pressure was much stronger as it continues the journey south breaking the minor resistance at $2.50 in the demand area on 4th December. This was with a larger engulfing candle dropping EOSUSD further down to $2.30 in the demand area. Brief retracement saw price at $2.91 in the supply area but a further upward movement was resisted by the 10-EMA.

A bearish marubozu 4-hour opening candle sustained the bears as price drop to $2.34. Increased momentum pushed EOSUSD to $3.23 in the demand area. Price is below the two EMAs which are fanned apart. This implies strength in the context of the trend and in this case the downtrend. The stochastic oscillator is in the oversold region at 9%. Its signal points down, a downward price movement signal

By measured move, $1.92 in the demand area may be the bears' long-term target while $2.00 is the medium-term target.

EOSUSD Price Short-term Trend: Bearish

Eos, EOSUSD, Cryptocompare chartEOS Chart by TradingView

EOS is in a bearish trend in its short-term outlook. The inverted hammer at $2.59 signalled the downtrend continuation after exhaustion of the bullish momentum. $2.41 in the demand area was the lower low of yesterday session.

The bearish 1-hour opening candle sustained the bears' pressure as EOSUSD dropped to $2.23 in the demand area earlier today. Currently, a bullish flag is forming that will return the bull back to continue the downward journey. Price is below the two EMAs that are fanned apart which implies strength in the current downtrend in the short-term.

 

 

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