Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
Over the past two months, EOS has faced stiff resistance from the $3.6-region. The $2.7 and $2.4-levels of support have been tested multiple times. The volatility of EOS aside, the larger picture seemed to be showing a double-top forming at $3.6. If the price doesn’t consolidate at the $2.4-level over the coming days, the chances of recovery for EOS will be slim. More downside would be seen, possibly as low as $2.1.
EOS 12-hour chart
As previously mentioned, the $3.6-level has rebuffed attempts by the bulls to drive the price higher on the charts. The $2.5-$2.7 region has been of importance over the past two months, and EOS found itself once more in this region, seeking refuge from selling pressure, at press time.
The $2.7-level could be retested in the coming days as resistance. The OBV showed that the second week of January saw massive selling volume as the price plunged from its $3.6-highs. Since then, while the buying volume did creep up, it was more or less equal over the past few days.
This could be set to change, however. The price appeared to form an inverted and descending scallop pattern, highlighted by the smooth white curve that represents where EOS would be heading if this pattern is confirmed.
The RSI moved under 50 once more after testing it as resistance, indicating that a downtrend was in progress. The most recent trading session saw the price visit $2.44 and rise swiftly to $2.61.
The attached charts, in white, highlighted a path for EOS, should the inverted scallop pattern play out. A drop back to $2.5 can be expected, and some possible sideways trading before a further drop to $2.3 too. A move under $2.55 would confirm the pattern and a short position can be entered, with a target of $2.3.
Invalidation of this path would be EOS climbing back above $2.72.
A possible scallop pattern emerged too, one that could see EOS drop to $2.3. Invalidation of this pattern will be a trading session close above $2.7, while confirmation of this pattern would be a trading session close beneath $2.55.