EOS Price Analysis: EOS/USD bounces off $2.2 support, stalls under trendline resistance

EOS made a brief comeback after suffering in extreme selling pressure for almost two months. The extended losses brushed shoulders with the key support at $2.2. However, the support range between $2.0 and $2.2 saw the bulls take over and force an incredible correction above $2.5.

In spite of the recovery, the momentum was not able to sustain gains above the moving averages. The 50 SMA contributed to the rejection at $2.5 while the 100 SMA at $2.6 highlights a zone with higher congestion of sellers.

In the meantime, the ongoing reversal has seen EOS lose 1.95% of its value on the day to trade at $2.42. Capping the immediate upside is the trendline resistance as well as the selling pressure at $2.5.

The Relative Strength Index hit a high around 60 but reversed the trend towards 50. The gradual slope hints that the selling pressure is growing. However, a bullish cross with the MCAD suggests that buying pressure is also present. Besides, as long as the MACD maintains the movement heading to the mean line, EOS could eventually retake the support at $2.5 and allow the bulls to focus on $2.6 and $3.0 resistance zones.

EOS/USD 4-hour chart