A price reversal for EOS will depend on buyers doing this

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

EOS has actually needed to sustain solid rounds of marketing stress over the previous 2 weeks, each activating a 19% sell-off. The most recent fall saw the price disregard a bottom sloping trendline that extended from its July lows. This placed the marketplace at risk of a prospective bearish fad button.

On the flip side, the 200-SMA (green) and a possible double bottom formation would invite renewed buying pressure. At the moment of composing, EOS was trading at $4.75, down by 3% over the last 24 hrs.

EOS 4-hour Chart 

Since late July, EOS has traded within a constant uptrend, supported by a respectable bottom trendline. Nevertheless, vendors limited gains over the essential resistance area of $5.6-$ 6 on 2 celebrations, leading to a radical loss of worth.

Short-sellers were front and center once again after EOS dipped below its lower trendline and mid-term SMAs (not shown). The 4-hour 200-SMA was the last protective hotel for bulls to provide a prompt fightback. Further bullish sentiment would also be injected by a double bottom setup which worked as a reversal pattern.

Reasoning 

The 4-hour RSI was still experiencing shockwaves of an in proportion triangular failure recently. The index failed to decisively rise above 60 and traded in bearish territory. Nevertheless, there were some indications of life as the index recuperated from the oversold area as well as aimed north.

A hike above the upper trendline would be an important step for a bullish reversal. Over here, it’s also important to mention that the daily RSI was still above the half-line and did not spill over to the bearish side. Furthermore, a portion of acquiring stress was kept in mind on the MACD as the EOS traded at its 200-SMA.

The histogram noted a downtick in bearish momentum as the index looked to recover from monthly lows. To finish, the DMI’s -DI line traded well over the +DI. This recommended that buyers need to make even more headwinds to change the manuscript in their support.

Conclusion

There was evidence to suggest that EOS will bounce back from its 4-hour 200-SMA (green) and a double bottom setup. A green candle seemed to be forming and buyers need to capitalize on this over the coming sessions.

If the price remains to relocate north, the $5-mark will be the following examination. Conversely, an extensive decrease would certainly press EOS completely in the direction of $4.4 prior to a price reversal is started.

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