This is how EOS holders responded to the network's EVM testnet launch, what to expect this week

• EOS EVM testnet launch allows developers to build and deploy smart contracts written in Solidity – Ethereum’s programming language.
• The launch underscores the network’s commitment to performance, flexibility, security, and developer experience.
• Despite the merits of this launch, long liquidations have been spotted on exchanges, causing EOS price to plummet.

The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14. The project has been a massive undertaking for developers and contributors across the EOS ecosystem.

EOS testnet launch: Benefits to developers and users

EOS Network is an open-source blockchain platform, prioritizing high performance, flexibility, security, and developer experience. The high-performing blockchain platform’s move to add the new feature dubbed EOS EVM (Ethereum Virtual Machine) is a big win for developers, allowing them to build and deploy smart contracts written in Solidity, the same programming language that Ethereum uses.

Clearly, the network has the interest of developers at heart. Evidence of this is their move one week ago, committing to a $20 million direct investment into EOS EVM and GameFi projects.

EOS price drops as exchanges record massive long liquidations

EOS price is trading with a bearish bias at the time of writing, despite the alt season heating up. The token is auctioning at $1.081, after shedding almost 5% in the last 24 hours. Trading activity is up by 20% in the same timeframe, however, as token holders sell off their EOS to minimize losses.

Based on Coinglass data, the EOS price drop caused $1.04 million longs to be liquidated on March 27, against $158,710 shorts. The largest liquidation occurred on Binance followed by OKX, then Bybit.

As shown on the chart, there were many long positions before the price drop.

What to expect from EOS price this week

An increase in selling pressure from the current level of $1.081 could send EOS price lower to find the next breather at the $1.017 support area, or in dire cases, tag the $0.955 support level, reposting the March 12 lows. Such a move would constitute an 11% drop from current levels.

The trajectory of the Relative Strength Index (RSI) moving downwards with a price strength of 45 further supports the bearish sentiment, showing EOS price could plunge further.

EOS/USDT 1-day chart

On the upside, if buyer momentum increases, EOS price could recover its position above the 100-day Exponential Moving Average (EMA) at $1.092 and fall back within the triangle above the 50-day EMA at $1.115. A decisive flip of this resistance level into support would increase the chances for recovery.

Within the triangle, the EOS price would have to confront the 200-day EMA at $1.161 for a chance to break out of the governing pattern northward. A daily candlestick close above this level will invalidate the bearish thesis. On an upward move, the altcoin could breach the resistance level offered by a downtrend line at the $1.187 psychological level.

In highly bullish cases, EOS price could ascend toward the $1.225 resistance level, or even tag the $1.297 obstacle, a move that woul constitute a 19% climb from the current price.