Eos has experienced a price rebound over the past 24 hours totalling 6.28%. Eos is currently trading around $5.93 after suffering a 15.84% price drop over the past 7 trading days. However, it important to note that this price drop was seen across the entire industry and not a singular event relating to Eos.

The most powerful infrastructure for Dapps

Eos has been described to be the most powerful infrastructure available for decentralised apps (Dapps). It is able to achieve this status due to its parallel processing capabilities and it being able to vertically and horizontally scale infinitely.

Eos has long said to be a competitor for Ethereum in the sense that it is a decentralised OS. Eos, like Ethereum, provides a platform where developers can release applications on their network, that is secured by the blockchain and therefore is not susceptible to being taken down by an App Store such as Google Play store of iOS. One of the largest problems surrounding Ethereum is the inability for it to scale.

A dapp called CryptoKitties managed to clog up the Ethereum blockchain toward the end of 2017, causing transaction fees to spike and backlogs of transactions to occur on the blockchain. This highlighted the fact that Ethereum is certainly not ready to be adopted by the mainstream audience as it cannot handle the requirement needed for a single popular decentralised app such as CryptoKitties. Although solutions to the scalability have been proposed and are currently in development, the problem still remains that Ethereum can only handle a total of 25 transactions per second (TPS).

This is where Eos hosts an advantage over Ethereum. Since Eos has launched, it has managed to clock in an all-time high TPS rate of 3708. Although this is still much lower than the 20,000 TPS that VISA can handle, it is still far supreme toward Ethereums 25 TPS rate.

Eos is a very popular cryptocurrency raising over $4 billion in its ICO. It is currently ranked in 5th position in terms of overall market cap across the entire industry, with a total market cap value of $5.38 billion. Eos has some significant losses to regain as it has dropped by close to 60% over the past 90 trading days.

Let us continue to analyse price action for Eos over the long term.

Price Analysis

EOS/USD – LONG TERM – DAILY CHART

Analysing price action from the long-term view above, we can see that Eos had experienced two significant bullish runs throughout its lifespan.

The first bull run

The first bullish run started from a low of $0.53 on October 29, 2017, and extended to a high of $18.67 on January 13 2018. This was a price increase totalling over 3300% from low to high.

What happened after?

We can see that during the first 3 months of 2018, price action began to decline until it found support at the .786 Fibonacci Retracement priced at $4.27. This Fibonacci Retracement is measured from the entire bullish run aforementioned. We can see that the .786 Fibbo Level proved to be a pivotal price level as the market reversed from here to make a second bullish run.

Let us analyse price action a little closer over the more recent period to examine the second bullish run and to highlight any potential support or resistance areas within the market.

EOS/USD – SHORT TERM – DAILY CHART

The second bull run

Analysing the market from a short-term perspective, we can see that the second bullish run within the market started from a low of $3.87 on March 18, 2018, and extended to an all-time high of $18.73 placed on April 29 2018. This was a total price increase of 500% from low to high.

What happened next?

We can see that after placing the high, price action began to roll-over, initially finding support at the .618 Fibonacci Retracement priced at $11.17 during May. This Fibonacci Retracement is measured from the entire bullish run outline above. We should also highlight that the .618 Fibbo level was significantly bolstered by the 100 day moving average which was trading in the same price area.

As June began to trade, price action was not able to sustain itself above the .618 Fibbo level and proceeded to fall below the 100 day moving average until the market found support at the .786 Fibonacci Retracement priced at $7.97. We can see that the market had specifically found support at a downside 1.272 Fibonacci Extension level priced at $7.12. We can see that this support level managed to hold throughout June and July, but failed to hold as August started to trade.

So where are we now?

Currently, price action has fallen below the .886 Fibonacci Retracement level priced at $6.07 and found support at the downside 1.414 Fibonacci Extension level priced at $5.34. The market has reversed over the past 24 hours and is trading at resistance at the .886 Fibbo level, once again.

Where can we go from here?

If the bullish momentum continues to push price action above the .886 Fibbo level priced at $6.07, we expect immediate resistance to be located at the downside 1.272 Fibonacci Extension level, once again, priced at $7.12. If the market can continue higher, further resistance can be expected at the .786 Fibonacci Retracement level priced at $7.97. Resistance even further above this level is expected at the 100 day moving average which is currently trading around the $9.17 handle.

What if the bears regain control?

Alternatively, if the bears managed to step back into the market we expect initial support to be located at the downside 1.414 Fibonacci Extension level priced at $5.34. Further support below this level is expected at March 2018’s low day close price at $4.48 followed by March’s low price of $3.83.

What are the technical indicators reading?

The technical indicators are currently leaning heavily toward favouring the bears within the market. The RSI is currently trading at oversold conditions as it trades under the 50 handle. For a sign that the bearish momentum is fading, we will look for the RSI to make its way back toward the 50 handle.

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