The EOS price recovery has run into a brick wall of resistance approaching $4.700, which suggest a trip below $4.00 is inevitable. EOS (EOS/USD) is trading slightly firmer this morning, at $4.465 (+0.09), higher by 13.2% this month and 70% year-to-date. The EOS platform currently has a market cap of $4.3 billion and is the 42nd most valuable crypto project ahead of Klaytn (KLAY/USD).
Despite the combined value of the cryptocurrency market surging to a new high above $2.5 trillion this morning, TRON has failed to benefit. TRX has woefully underperformed BTC over the last two weeks. The reason is that capital is flocking to the market leader following yesterday’s listing of the first Bitcoin-based ETF. As a result, assets lower down the pecking order are failing to attract investor interest. Furthermore, Bitcoin is pulling away from the pack, and its dominance continues to increase. As a result, the EOS price may slide over the next few weeks.
The daily chart shows EOS is trending lower, capped by a descending trend line at $4.633. The 100-Day Moving Average at $4.555 and the 50 at $4.678 reinforce the downtrend. Subsequently, EOS is likely to continue lower, towards trend line support at $3.644.
Bearish sentiment should prevail as long as the EOS price is capped by the DMA’s and the descending trend line. However, EOS should find support in the $3.000-3.500 range. On that basis, I maintain a near-term bearish view with a $3.500 price target. However, if the EOS price clears the trend line at $4.633, it will invalidate this thesis.
EOS Price Chart (Daily)
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