Bitmain invests in EOSIO developer, Block.one; EOS price reacting to the double top pattern

Bitmain has settled on EOS to be its second largest investment in 2018. The $12 billion worth crypto company is investing in Block.one; the company that is behind the development of EOS mainnet. Jihan Wu, co-founder of Bitmain has said that Eos was picked because, in the past one year, it has shown significant innovations. EOS network is built on the pillars of scalability, security and reliability. Moreover, EOS is committed to providing an able platform that supports the development of dApps along with a stable ecosystem. GLOBALCOIN REPORT reports that Jihan Wu stated in reference to EOS:

“The protocol is a great example of innovation regarding the blockchain technology, with its scalability and performance being capable of meeting the ever-growing consumer needs.”

EOS price analysis

EOS has come out of the dip after trading lows around $6.65. The price has been recording higher lows and higher highs from July 15 when it changed hands above $7.0. The resistance at $7.49 restricted movement at first, but the price reacted forming a brief engulfing candle that took the price above $7.6. Another key resistance at $8.00 limited the gains yesterday but the declines were supported slightly above $7.8. Consequently, the bulls reacted to the short-term pullback with another extended bullish engulfing candle testing the long-term critical resistance at $9.0.

Currently, EOS price has formed a double top pattern marginally above $9.00. Subtle lower corrections have been made but the price has bounced back above the 61.8% Fibonacci level between the lows of $6.62 and the highs of $10.72. The stochastic on the 2-hour chart is at 40% and pointing down to show the selling pressure is growing. EOS/USD has to overcome the resistance at $9.00 in order to create a clear path towards $9.5 and eventually $10.00 in the medium-term.

EOS/USD 2-hour chart