Key Takeaways
- EOS broke out from a long-term falling wedge structure.
- The current dip appears correct within the broader bullish structure.
- Breakout above $0.86 confirms trend continuation.
EOS has completed a significant long-term correction and appears to be building a new bullish impulsive structure.
The price surged above key resistance levels after breaking out of a multi-month falling wedge before entering a corrective pullback.
Although it made a higher high in May than April, it was substantial before falling back down.
Although its recent 14% price spike appears impulsive, EOS has been downtrending since the May high.
Will this turn into a larger upward move, or has the bullish momentum already exhausted?
EOS Price Analysis
On the higher time frame, EOS ended a prolonged corrective cycle labeled as an A-B-C-D-E structure, with the final low near $0.45 as a macro bottom.
You’ll Want To See This
The breakout from the falling wedge in late March was followed by a five-wave rally, confirming a bullish trend shift.
Wave V of this rally topped at $0.87, coinciding with the 0.382 Fibonacci retracement of the entire macro decline.
Since then, EOS has corrected to a $0.58 higher low and continued its uptrend to a higher high of $0.99 on May 10, finding resistance at the 0.5 Fibonacci level.
From there, the price sharply downturned to a low of $0.76 on May 15, leading to the oversold values on the Relative Strength Index (RSI).
An upward spike of 14% followed, retesting the 0.382 Fib level, but immediately upon the interaction, it fell back to $0.82, hinting at a rejection.
The uptrend remains intact if EOS stays above the diagonal support line connecting the previous wave ii and wave iv lows.
If the trend resumes, RSI has reset to neutral territory, allowing another leg up.
Overall, the structure favors continuation toward higher retracements at $1.12 (0.618 Fib) and $1.30 (0.786 Fib) if the bullish structure remains intact.
However, considering the recent developments, it could first continue for a lower low, concluding its corrective phase.
EOS Price Prediction
The lower time frame shows a potential (a)-(b)-(c) corrective structure playing out after the initial impulsive rally from early April.
Wave (b) peaked at $0.9972, forming a local top, then sharply declined to around $0.76, representing wave (c).
Price bounced slightly from this level, and current price action hovers around the 0.382 retracement ($0.835), facing resistance from the descending trendline formed since the local top.
The RSI has shown a mild bearish divergence, suggesting that if EOS fails to break above $0.86 decisively, another retest of lower levels, such as $0.786 or $0.75, is possible.
It came to the oversold zone, suggesting that a bearish reversal is more likely from this point.
However, if price breaks above the descending trendline, the following bullish targets lie at $0.904 (0.786 Fib) and $0.993 (local high).
This area between $0.83 and $0.86 remains critical; a clean breakout signals bullish continuation, while rejection could lead to a prolonged correction or consolidation phase.
Given the underlying wave structure, the broader trend favors upside if immediate support holds.
Considering the price structure, we can primarily expect a lower low, testing the ascending trendline around the $0.75 area, which will likely conclude the corrective (a)-(b)-(c) stage.
Should the price break below this area, it could continue to $0.58, the strongest support level.
Key Levels to Watch
- Immediate Support: $0.786 (Fib and wave (c) low).
- Rising Trendline Support: $0.75 zone.
- Local Resistance: $0.86 (descending trendline).
- Fib Resistance: $0.904 (0.786 retracement).
- Macro Target: $1.125 (0.618 of macro decline).
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful?
