EOS has turned down from close to the top of the tight range. It is currently back at the midpoint. If the bears push prices below the 20-day EMA, a fall to the bottom of the range is probable. Traders can keep the stops on their long positions at $4.90.
A breakdown of $5 can sink the EOS/USD pair to $4.49 and below that to the critical support at $3.8723. However, we expect the bulls to offer strong support at $5.
The virtual currency will show signs of strength if it breaks out of $6. A reversal will be signaled when the bulls sustain the price above $6.8299. Following a breakout, the target levels to watch on the upside are $9.1668 and $11.4.