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EOS / USD Technical Analysis: Exceeding Its Limits

Though EOS appears bearish on both timeframes, there are signs that it's approaching overstretched conditions.

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  • EOS is bearish in the short-term with the pair consolidating inside a broadening wedge pattern
  • The medium-term picture remains bearish with EOS still consolidating below the neckline of a sizeable head and shoulders pattern
  • Technical indicators are approaching overstretched conditions on both time frames

EOS / USD Short-term price analysis

 

In the short-term, the EOS / USD pair is bearish, with price still trading around the neckline of a failed inverted head and shoulders pattern.

EOS is in a period of price consolidation within a broadening wedge or megaphone pattern, as seen on the four-hour time frame. This type of broadening wedges can be either bullish or bearish depending on how they form within an existing trend, so the path of least resistance is to the downside.

 

Pattern Watch

A bullish inverted head and shoulders pattern is starting to form inside the wedge pattern, which could signal a near-term bullish move.

 

 

EOS / USD H4 Chart                                         (Source: TradingView)

 

 

MACD

The MACD indicator is currently providing no clear trading signal and is flatlined due to the extended period of price consolidation.


EOS / USD Medium-term price analysis

 

EOS is bearish in the medium-term, with the cryptocurrency still in a period of consolidation below the neckline of a large head and shoulders pattern on the daily time frame.

The EOS / USD pair’s December 2018 trading low has yet to be tested, although price still trades below its 50-day moving average, which is a signal of overall medium-term weakness.

Range-bound trading conditions are likely to persist until we see a clear technical breakout from the pair’s six-week trading range.

 

 

EOS / USD Daily Chart                                         (Source: TradingView)

 

 

Pattern Watch

The head and shoulders pattern on the daily time frame remains the dominant theme; we could see the neckline of the bearish pattern tested if selling momentum continues to stall.

 

MACD

The MACD indicator on the daily time frame mirrors the four-hour time frame and offers no clear signal at present.

 

Stochastic

The Stochastic indicator on the daily time frame is bullish, which is likely to signal at least some temporary upside in the pair. More interestingly, the indicator is close to oversold conditions, which is a bearish development considering the pair’s weak technical position over the medium and long-term.


Conclusion

 

EOS is resoundingly bearish over the medium-term while trading below the large head and shoulders pattern.

Technical corrections higher in the short-term may occur as bearish selling momentum wanes.

 

  • eos
  • EOS
    (EOS)
  • Price
    $3.53
  • Market Cap
    $3,645,908,979.60

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