Today the EOS/USDT pair is down 3% as it retests the breached resistance of $1.58. Reclaiming this barrier suggests the end of the last correction phase, and the new cycle could surpass the high swing resistance of $1.9. Moreover, the technical chart reveals a bullish reversal pattern to bolster the same cause.
Key points from EOS analysis:
- The $1.58 breakout bolstered the formation of the cup and handle pattern
- A rising support trendline maintains the bullish trend
- The intraday trading volume in the EOS is $1.5 Billion, indicating a 48% gain
Following the August second-half downfall, the EOS price plunged to the 0.5 Fibonacci retracement level at the $1.369 mark. Furthermore, the coin price twice retested this support within a fortnight indicating the buyers are defending this level.
Moreover, with the $1.37 base support, the EOS chart revealed a double bottom pattern with the neckline at the $1.58 mark. On September 7th, the prices gave a massive breakout from the neckline resistance supported by a significant jump in volume.
Thus, completing this bullish reversal pattern accelerates the bullish momentum, and reclaiming the $1.58 mark opens the path to swing high resistance of $1.92. As a result, the post-retest rally may surge the EOS price 18% higher to hit the $1.9 barrier.
In addition, the bullish recovery to swing high revealed the formation of the cup and handle pattern. Thus, the price pattern shall encourage buyers to breach the $1.92 and hint at the extension of prevailing recovery.
However, if traders feel supply pressure midway, a bearish pullback is acceptable until the prices sustain above the rising trendline.
MACD indicator: the fast and slow lines near a bullish crossover gives additional confirmation for a $1.58 breakout. Moreover, the diminishing red bars in the histogram chart hints at the weakness in bearish momentum.
EMAs: The 50-and-100-day EMA aligned with the $1.37 level offered confluence support for EOS traders. Moreover, the 200-day EMA is currently wavering at the $1.6 mark, limiting the bullish growth.
- Resistance levels: $1.850 and, $1.9
- Support levels- $1.58 and $1.5
