The EOS price rally has stalled following four straight days of gains and, despite the 30% uplift, remains 40% below last months high. For now, EOS (EOS) is still in a downtrend, but with Bitcoin (BTC) breaking ground above $50k, bulls will be eyeing a return to the September peak.
Similar to most of the market, EOS experienced heightened volatility in September. The EOS price surged 25% in the first week of the month to a three-month high of $6.54. However, EOS slipped 40%, closing out September with a 30% loss. Subsequently, the price fell back into the buy zone, encouraging bullish traders to dip their toes. Subsequently, EOS has fared much better in October, gaining in four of the last six days. However, the road back to $6.54 is littered with significant resistance.
The daily chart shows EOS turned higher after testing long-term trend support at $3.61. The resulting rally lifted the price above the 100-day moving average at $4.47, although EOS is struggling with the 50-day at $4.83. Decisive clearance of the 50 DMA brings the significant 200 DMA at $5.35 into focus. If EOS climbs above the 200 DMA, the next logical target is the September high of $6.54.
The Relative Strength Index is showing a bearish divergence, caused by the series of lower highs and lower lows. Therefore, EOS is vulnerable to the downside. If the price fails to clear the 50 DMA on a closing basis, the 100 DMA at $4.47 is the immediate support. Furthermore, below the 100-day, a retest of trend support is likely.
For more market insights, follow Elliott on Twitter.