EOS is testing a key area of interest that appears to be holding as resistance on the daily time frame. Price could be due to resume the downtrend from here and the Fib extension tool shows the next targets.

The price has formed lower highs and lower lows to trade inside an ascending channel. Resistance is holding as it coincides with the 200 SMA dynamic inflection point. On the subject of moving averages, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to gain traction than to reverse.

With that, EOS could revisit the swing low that lines up with the 61.8% Fib near the 2.0000 major psychological level. The 38.2% level is close by at 3.0000 while the 50% level lines up with the mid-channel area of interest. Stronger bearish momentum could take price to the 78.6% level at the 1.1226 mark or the full extension at 0.1950.

RSI is turning lower after reaching the overbought zone to confirm that sellers are returning. This oscillator has plenty of room to move down before hitting the oversold region. Also, a divergence can be seen as RSI made higher highs while price had lower highs.

Stochastic is already on the move down so EOS price might keep following suit. This has crossed below the center line to signal selling momentum that could drag the price down to the next support zones.

Bearish momentum could weigh on EOS as a hacker reportedly stole $7.7 million worth of the coin when a blacklist maintainer failed to make an update. A security incident came to light a few days back, but the security procedure in this scenario wasn’t completed.

In a Telegram group, EOS42 said:

This scenario played out in the last 24hrs when a newly rotated top 21 BP failed to apply the blacklist. Unfortunately, one blacklisted account holding [2 million] EOS began to be emptied.

Images courtesy of TradingView