On December 23, EOS plunged to $1.93 low, and the price corrected upward immediately. This bearish reaction was the result of an attempt by buyers to break the resistance at $3.20.
The bulls tested the resistance at $3.20 twice before the break down to the recent low. After the breakdown, the bulls buy the dips to push EOS to the previous high.
To be out of the downtrend zone, buyers have to push the price above the $2.80 support. Today, the bulls are testing the $2.80 resistance zone to break it. The altcoin will resume an upward move if the current resistance is breached. Conversely, if EOS faces rejection at the $2.80 resistance, the coin will continue its decline. The coin will fall to revisit the previous lows at either $2.00 or $2.15. However, EOS is trading at $2.61 at the time of writing.
EOS indicator reading
EOS price is below the 21-day and 50-day SMAs which suggests the coin may fall. The price is testing the resistance line of the descending channel. A break above the resistance line will mean the resumption of the uptrend.
Key Supply Zones: $5, $6, $7
Key Demand zones: $3, $2, $1
What is the next direction for EOS?
The Fibonacci tool has indicated the downward movement of the coin. On the December 23 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. It indicates that EOS will fall to level 2.0 Fibonacci extensions. That is the market will reach the low of $0.5754
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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