Winter may be over: EOS technical analysis
EOS/USD analysis points to a possible price floor in place around the $2.15 level. Watch out for a continuation of the bullish reversal if the cryptocurrency gains above the $2.85 level.
EOS has been under downside pressure over recent months as the bearish trend in the cryptocurrency accelerated.
EOS technical analysis shows that the crypto winter in the popular cryptocurrency may be coming to an end, placing the $3.50 level as a likely near-term target.
EOS/USD medium-term price trend
EOS technical analysis shows that the cryptocurrency is still technically bearish, and has been trading below its key 200-day moving average since mid-November.
The recent recovery across the broader cryptocurrency market has helped improve the technical outlook of the EOS/USD pair, with price now trading above its 50-day moving average.
Continued gains above the $2.65 level should encourage the notion that a medium-term price floor is now in place, around the $2.15 level.
Furthermore, the recent recovery from the $2.15 level has also helped to create a bullish double-bottom pattern on the daily time frame. This hints that a medium-term recovery may be forthcoming.
Another critical factor in the upcoming rally will be the performance of Bitcoin and the broader cryptocurrency market. EOS will start to look undervalued from current levels if other major cryptos continue to rally.
With these factors in mind, a rally towards the EOS/USD pair’s 200-day moving average, around the $3.60 level, seems possible.
EOS/USD short-term price trend
EOS/USD analysis shows that the cryptocurrency is technically bullish over the short-term while price trades above the $2.60 level.
Positive technical signs are also starting to emerge across the lower time frames, due to the creation of a large reversal pattern.
The size of the bullish pattern suggests a rally towards the $3.50 area. This also coincides with medium-term analysis, and the expected advance towards the EOS/USD pair’s 200-day moving average.
A sustained breakout above the $2.85 level should provide short-term traders with a strong buy signal.
Traders should also note that a large reversal pattern with substantial upside potential will form on the daily time frame if the EOS/USD pair can reach the $3.60 level.
EOS/USD technical summary
EOS/USD analysis suggests that buying the cryptocurrency from current levels may be an attractive option now that a reversal pattern has formed.
Medium-term analysis suggests an advance towards the $3.60 level may be on the horizon if the $2.85 level is breached.