EOS is resuming its downtrend and might be aiming for the bottom of its descending channel on the 1-hour chart. The area of interest at the top of the channel and 61.8% Fibonacci retracement level and is also in line with the 100 SMA dynamic inflection.
This moving average continues to hold as dynamic resistance and is keeping a lid on EOS gains. Price is now down to the mid-channel area of interest but might still be due for a test of the swing low or the channel support.
RSI appears to be pulling higher but also has some room to slide before indicating oversold levels. This suggests that EOS has room to fall while bearish pressure is in play as well.
Cryptocurrencies have been in a rout over the past weeks and it looks like the selloff is ready to resume at this point. Bulls were quick to book profits on the bounce, allowing nearby resistance levels to hold, for fear of further declines.
It would take a really strong positive catalyst to stem the selloff but there appears to be none in sight. For one, risk aversion is very much present in general financial markets as geopolitical risks from trade tensions, Brexit, Italian debt, and the tumble in crude oil are in play.
In the cryptocurrency market, the selloff was seen to have been spurred by the Bitcoin Cash mining war, worsened by the SEC ICO crackdown, and sustained by the FUD sentiment.
As for EOS, the latest update is that the altcoin is still fighting for the fifth top spot in market cap rankings versus Stellar, and winning out could draw a bit more inflows. Losing this battle, on the other hand, could lead to funds flowing to Stellar instead.