EOS/USD Sees Chunky Buying at $5.0000 Area
The EOS price initially started the session on the back foot, testing the $5.0000 area to the downside. This was in proximity to the low print seen on Monday 29th, where the price had dropped a chunky 7% over the course of that session.
After the heavy fall on Monday, throughout Tuesday and much of Wednesday, price action in EOS/USD was within consolidation mode. Price was observed moving in a range-bound nature, having formed a sideways channel formation. The price had been flirting around a well-known area of demand, within the low $5.0000 territory. This led to decent buying kicking in, through the second half of the session today – Wednesday. Bulls drove the price up over 4%, after receiving a boost within the mentioned buying area.
The EOS/USD rally was limited after the price ran into some resistance, an area that recently caused issues. Between 12-15th October, the early $5.3000 region had prevented the bulls from passing through. Until the price was knocked back down to $5.1800, to then see a large surge, through the mentioned resistance. As a result, EOS/USD has run well into the $6.0000 territory, retesting a major broken ascending trend line. To then be rejected and sent back down to $5.0000 price region.
Where Next for EOS/USD?
Looking at the 4-hour chart view, the bulls will need to break down the resistance seen at $5.3100 area. A push through here could see some decent upside momentum, similarly to what was seen on 15th October. However, this time round, there will a range block that will need to be broken down. After the large rally on 15th October, the price entered a period of consolidation, trading within a tight $0.30 range for a prolonged 14 sessions. Should this be cleared, the door should be opened to $6.0000. Investors should therefore keep this level in focus moving forward.
In terms of support, the $5.0000 is vital, as a failure to hold, could open a heavy amount of selling pressure for EOS/USD. The last time this level was firmly breached, was on 17th September. As a result, over the course of two trading sessions, the price went on to drop another 6%. It had fallen to another area of demand seen at $4.6000. Looking further south, there isn’t too much in the way of a quick move sub-$4.0000, should this area also fail to remain intact.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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