EOSUSD on a strong bearish move expected to test the $2.181 support level

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blockchain
  • EOSUSD has seen its prices drop by 1.7 percent at press time
  • Daily charts indicate that the crypto is in a strong bearish market expected to retest the $2.454, support level.
  • EOSUSD breaking the $2.454, support level will spell another strong bearish move towards $2.181.
  • Intraday trading for the crypto shows that it is has retraced to the 50 percent Fib retracement level.
  • Intraday trading, however, is still strongly biased to a strong bearish market move.

EOSUSD opened the markets at $2.7087, which also marks the highs of the day. This was followed by a drop in the market price, with the crypto losing 1.7 percent of the value at press time.

EOSUSD daily chart analysis

EOSUSD on a strong bearish move expected to test the $2.181 support level 1
Image Source Trading view

The crypto has been in a strong bearish move for more than a month, a move that started on August 12. On the daily chart, the prices have already broken an ascending trendline that started in March and had lasted for months. This is a clear indication of the volatility of the crypto to the downside. a previous analysis of the crypto, more than a week ago, had shown that there had been a possibility that the coin would reverse its bearish move to the upside.

The EOSUSD is expected to retest the support level at $2.454, which it set on September 2nd and failed to break the level the following day. If the prices break out of the support and resistance structure, the prices could move further down to retest the longterm support levels at $2.181

Technical indicators on the daily charts also show a strong bearish move, with Bollinger Bands confirming its volatility. The prices have been much closer to the lower Bollinger Bands, over the last few weeks, indicating that the momentum is likely to continue.

The MACD indicator also shows the crypto has been in a strong bearish move for more than one month. The indicator also shows a growing divergence of its reading from the baseline, which indicates that the prices are likely to continue with their downward trend.

Intraday EOSUSD trading on the 1-hour chart

EOSUSD on a strong bearish move expected to test the $2.181 support level 2
Image source Trading View

The one hour chart shows that the market immediately the market opened for the day, it was followed by a strong bearish move. Currently, the EOSUSD is trading at $2.668 after having reached lows of 2.582.

Using Fibonacci retracement, the one hour chart shows that the prices are currently at the 50 percent retracement level, where it has faced some resistance. However, the prices for the intraday are likely to break the 50 percent retracement levels and proceed to the 67 percent retracement level, where the crypto is more likely to face a stronger resistance. When this happens, the crypto, which is in a longterm bearish market, will resume the bearish market with a strong move to the downside.

The Bollinger Bands also confirms the retracement of the crypto prices, whereby prices can be seen bouncing from the lower Bollinger Band strongly. However, the prices are still much closer to the lower Band, indicating that the move is likely a bearish flag and the bearish market will resume after the retracement.

This can also be seen in the MACD indicators which are recording a slight divergence to the upside. However, the indicator is also heavily biased to the downside, showing signs that the current price gains on the one-hour charts are temporary and the market is still in a bearish market.

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