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On September 7, 2019, theprice reached a low of 30,740 satoshis. A rapid upward move followed and EOS reached a high of 38,410 satoshis on September 9. After a brief decrease, EOS began another upward move, reaching highs above 41,000 satoshis.
How long will EOS continue to increase? Keep reading below if you want to find out.
For our previous analysis, click here.
A look at the weekly time-frame shows that the previously mentioned upward move began once the price reached the support area of 30,000 satoshis.
However, we can see that the price is currently below both the 10- and 20-week moving averages (MA), facing very close resistance from the former.
Will it be successful in moving above it?
Looking at a shorter time-frame, we can see that the price is not following any clear trading patterns and that the current move materialized in two upward waves.
Additionally, we have traced on resistance area, which coincides with the resistance provided by the 10-week MA.
The price is very close to reaching this resistance area.
Furthermore, when we include the RSI and the MACD into the analysis, we can see that the upward move has begun to lose strength.
Both of them have been generating bearish divergence since EOS reached the first high on September 9.
This often precedes a price breakdown.
Since it is appearing close to a significant resistance area, we do not believe that EOS will break out above the resistance.
An outline of possible future price movement is given below.
It looks as if EOS has just finished the third wave of a five-wave Elliott formation.
Afterward, it is likely to retrace before beginning the final upward wave.
Since Elliott theory dictates that wave 3 cannot be the shortest, we are expecting a very short wave five, adhering to the levels of resistance previously discussed.
The EOS price recently began an upward move.
It is not following any clear trading patterns.
For hypothetical trading purposes, we consider EOS a sell near 42,000 satoshis.
Do you think that EOS will reach the resistance area? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
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