EOS Price Analysis: EOS breakout cut short after encountering intense resistance

EOS retreated nearly by 43% from the highs traded in August at $3.88. Support slightly above $2.2 brought back some semblance of stability as well as hope for recovery. However, a recent breakout has run into stacks of resistance, hence delaying the expected bullish momentum.

EOS stuck between key resistance and support

The smart contract has recently broken above a descending triangle’s hypotenuse. This called for an increase in buy orders, culminating in gains past $2.5 and the 50 Simple Moving Average.

However, the breakout has been cut short by intense seller congestion at the 200 SMA on the daily chart. To sustain the uptrend, EOS has to close the day trading above this immediate hurdle. At the same time, buyers must be aware that the 100-day SMA may hinder price movement at $2.75.

EOS/USD daily chart

The same daily chart shows EOS attempting to break above the upper boundary of the Bollinger Bands. If bulls pull through with their mission, EOS might come out of the extended consolidation. The price must also hold above the middle boundary of the indicator to ensure that the potential bullish outlook is guarded.

On the other hand, the Relative Strength Index emphasizes the sideways price action. It is worth noting that EOS is slightly in the bulls' hands, especially with the RSI holding above the midline and pointing north.

EOS/USD daily chart

The 4-hour chart brings into the picture an ascending wedge pattern. In other words, this pattern might validate the bearish outlook, mostly if EOS gets rejected at $2.7.

EOS/USD 4-hour chart

Trading below the wedge will call for a surge in sell orders and create enough volume to push EOS/USD back to the drawing board ($2.2). Note that the 50 SMA, 100 SMA and 200 SMA will absorb some of the selling pressure and prevent the price from falling sharply.