EOS Sees Positive Breakout of Consolidation Pattern; Could This Indicate an Incoming Bullish Wave

Yaz Sheikh Price Analysis published October 9, 2018 | modified August 8, 2019


EOS Sees Positive Breakout of Consolidation Pattern; Could This Indicate an Incoming Bullish Wave

  • EOS has recently broken above a 2month symmetrical triangle pattern
  • It is important to wait for further confirmation before interpreting this breakout as an indication that the bullish run is incoming
  • Support levels moving forward; $5.81, $5.34, $5.18, $5.00, $4.73, $4.47.
  • Resistance levels moving forward; $6.07, $6.83, $7.12, $7.30, $7.58, $8.00.

EOS has seen a +4.17% price increase over the past 24 hours of trading. The cryptocurrency dedicated to becoming the most powerful decentralized operating system is currently trading at a price of $5.95 after seeing a further 4.58% price increase over the past 7 trading days.

Traders are being more and more excited as they speculate as to whether the recent breakout above the consolidation pattern will hold and not turn into a false breakout before the day’s end.

EOS is currently ranked in 5th position in terms of overall market cap across the entire industry. It has a total market cap value of $5.39 billion after the 15-month-old coin sees a 22% price decline over the past 90 trading days. EOS is currently trading at a value that is 72% lower than its all-time high value.

Know More: EOS Price Prediction 2019/2020/2025

Let us continue to analyze price action for EOS over the short term and highlight any potential support and resistance zones.

EOS price analysis


Source: https://www.tradingview.com/x/ZZwKDola/

Analyzing the market from the short term perspective above, we can see that EOS has seen a recent bullish run when price action started from a low of $4.17 on August 14th, 2018 and extended to a high of $6.81 on September 1st, 2018. This was a price increase totaling 62% from low to high.

After placing the high we can see that price action had rolled over and began to fall. It had found support at the short term .786 Fibonacci Retracement level (drawn in green) priced at $4.73 before rebounding.

It is important to also highlight that over the course of the past 2 months, the market has been forming a consolidation pattern known as a symmetrical triangle. We can see that the recent price surge witnessed today has pushed price action above the upper boundary of the triangle as the market breaks towards the upside. This could be a potential signal that the market is potential undergoing the makings of a new long-term rally which could push EOS to fresh all-time highs.

Moving forward, if the bulls can push price action above the resistance at the long term .886 Fibonacci Retracement level (drawn in red) priced at $6.07 then immediate resistance above this level can be expected at September 2018s price high at $6.83.

Further resistance above this level can then be located within the resistance zone market between $6.83 and $7.30.

Alternatively, if the bears re-enter the market and push price action back into the previous triangular pattern, we expect immediate support below to be located at the short term .5 Fibonacci Retracement level (drawn in green) priced at $5.49 followed by the short-term .618 Fibonacci Retracement level priced at $5.18.

If the bears can push price action even further lower then we can expect further support at the lower boundary of the triangle.

The RSI on the 4HR chart has recently entered oversold conditions above 70 which could indicate that the recent bullish momentum may need to pause before continuing further. So long as the RSI can remain above 50 on the daily chart, we can expect this market to continue to make further gains.

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Yaz Sheikh 182 Articles
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
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