EOS (EOSUSD) Technical Analysis: Selloff Ready to Continue

EOS recently broke below a short-term rising trend line to signal that a reversal from the climb is due. Price has since bounced off support around 2.200 and pulled up to the broken trend line for a retest.

The area of interest has held as resistance, indicating that the selloff is due to resume. Applying the Fibonacci extension tool shows the next potential downside targets.

The 38.2% level close by is around the 2.290 mark while the 50% level is in line with a near-term support level at 2.238. The 61.8% level lines up with the swing low and 2.200  mark while the 78.6% level is around 2.132. The full extension is at 2.051 and may be the ultimate target for sellers.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. However, the gap between the moving averages is narrowing to signal weakening selling pressure and a potential bullish crossover.

If that happens, EOS could revisit the area of interest or test the 200 SMA dynamic resistance again. The swing high could also serve as resistance, but a break past this could indicate that the uptrend is resuming.

Stochastic is pointing down, though, also indicating that sellers have the upper hand. This oscillator has plenty of room before reaching the oversold region, which means that bears have a lot of energy left. RSI is also heading south so EOS might follow suit, but this oscillator is already closing in on the oversold region.

Cryptocurrencies had quite a positive run the other day, but these seemed to be pullbacks from the longer-term slides. Selling pressure could now return as the enthusiasm for the Fidelity institutional platform launch in March appears to be fading.