EOS recently broke below an ascending trend line to signal that a reversal from the climb is due. Price is finding support around the 2.185 level, so a pullback might be due before more bearish momentum kicks in.

The 100 SMA has crossed 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 resume than to reverse. These moving averages are close to the broken trend line, which might act as resistance in a pullback.

Applying the Fib tool on the latest swing high and low shows that the 61.8% level lines up with the broken trend line support as well. The 100 SMA is closer to the 50% level, which might also hold as a ceiling. The 38.2% level is at the 2.325 area, which might be enough to keep gains in check in a shallow retracement.

Volume picked up on the breakdown as selling momentum kicked in but has since tapered off. Stochastic was able to pull up from the oversold region to confirm that buyers are taking over while sellers take a break.

EOS has been overtaken by Tether as the fourth largest cryptocurrency in terms of market cap, so it’s understandable that traders are liquidating their former holdings to transfer to stronger coins. Tron and Bitcoin Cash have been outperforming their peers as well.

Although most cryptocurrencies appear to be pulling off their declines in the past 24 hours, EOS appears to be part of the weaker bunch. Risk aversion has been observed in global financial markets as well, mostly spurred by trade tensions and anxiety related to Brexit developments, adding to more downside pressure on EOS and other riskier assets.