EOS has formed higher lows and lower highs to create a symmetrical triangle consolidation pattern on its 4-hour chart. Price was just rejected on the test of resistance and is aiming for a test of the triangle bottom around 2.500.
The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, support is more likely to hold than to break. In that case, another test of the triangle top around the 3.000 major psychological level might be seen. The 200 SMA is also just below the bottom of the triangle to add another layer of support in the event of a dip lower.
RSI is still on the move down after all, indicating that there’s still selling pressure left. This oscillator has a bit of room to go before hitting the oversold region, which suggests that bears might still extend their stay. Stochastic is also heading south so EOS could follow suit while sellers are in control. Once both oscillators hit the oversold region and turn back up, buyers might return and spur another test of the top.
If sellers are strong enough to push for a break of support, though, EOS might slide by the same height as the triangle pattern. This spans 1.500 to around 3.400. Similarly a break past the resistance could trigger a rally of the same size.
So far it looks like cryptocurrencies were off to a positive start but now traders are holding out for more conclusive evidence that the industry is about to pick up. A lot is riding on expectations of institutional investments and an increase in volumes, but it appears that resurfacing uncertainties in general financial markets are weighing on traders’ appetite for risk.