EOS-based wallet developers disappeared with users' coins

• EOS Ecology appears to be a Ponzi scheme.
• EOS/USD has been trading in a range with a bearish bias.

Users of an EOS-based cryptocurrency wallet cannot withdraw their funds. Experts believe that the developers performed an exit scam, while the whole project is a Ponzi scheme. The news was first reported by the Chinese media outlet  ChainNews. Allegedly, the app known as  EOS Ecology promised investors high returns on their assets and falsely claimed its partnership with Starteos, one of the largest and most trusted EOS block producers. 

According to the information contained in blockchain,  the stolen funds were transferred to the wallet that belongs to the account named "huobidevice3". However, it has nothing to do with the cryptocurrency exchange Huobi.

EOS/US: Technical picture

At the time of writing, EOS/USD is changing hands at $2.51. The coin has recovered from the recent low of $2.44 moving in sync with the market. Despite the recovery. the coin is still nearly 4% lower from this time on Monday. EOS takes 8th place in the global cryptocurrency market with the current capitalization of $2.3 billion and an average daily trading volume of $3.7 billion. 

On the intraday charts, the recovery is capped by 1-hour SMA200 at $2.56. Once this barrier is cleared, the upside may gain traction with the next focus on $2.60 followed by 1-hour SMA100 at $2.62. The ultimate mid-term target comes at $3,.00; however, the bulls will have to clear the upper line of the daily Bollinger Band at $2.82.

On the downside, the local support comes at the intraday low $2.48 and the lower line of the 1-hour Bollinger Band at $2.47.  A sustainable move below this area will lead to an increased selling pressure that may push the price towards $2.40 and $2.25, which is the lower line of the daily Bollinger Band.

EOS/USD 1-hour chart

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