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In the last 24 hours, the price of EOS has increased by 14.34% from yesterday’s low at $3.6467 to its highest point today at $4.1673. The price has retraced since and is currently sitting around $4.099. As the price of EOS was in a correction after a decrease of over 23% seen on 24th of February we could now be seeing the end of the second corrective structure to the upside.
On the hourly chart, you can see that a minor symmetrical triangle was broken out off but the price was stooped out at the 0.618 Fibonacci level which serves as resistance. This could indicate that the momentum behind the increase isn’t as strong as initially seen.
The price of EOS was been moving sideways after the initial drop was made which has been labeled as two consecutive three-wave corrections and now that the price came up to its significant resistance level and has been stopped out there with clear signs of struggle (as indicated by the wick from above) the second ABC correction to the upside has most likely ended.
We have seen the price of EOS establishing support around the 0.5 Fibonacci level at $3.66 which is why it is most likely going to serve as strong support level again on the way down but if we are to see another third correction to the downside now starting to develop it would very likely be broken especially if we are to see an impulsive decrease.
Downside is expected from here as the price prior to the sideways correction came up by over 101% in a five-wave manner. Considering that after that increase ended we have seen a decrease of around 23% after which this sideways action occurred with now price increasing to its significant resistance we have been most likely seeing the start of the retracement out of which the current increase would be the second wave out of a higher degree movement to the downside.
Looking at the 4-hour chart, you can see my Elliott Wave count clearly as well as my projection for the further price action development. This would be the wave X from a WXY correction of a Minor degree much like it happened after the price ended its first five-wave move on 24th of December.
As you can see the similarity in the chart pattern is high which makes me think that we are going to see now either an impulsive five-wave move if the correction is to end on a Y wave or even further depreciation of the correction is to end on a Z wave.
The lower ascending trendline interaction would be expected for the ending point of the correction and depending on the steepness of the expected move we are to adjust the projected target, but for now, I think that the price is heading towards 0.382 Fibonacci level or even lower around the horizontal level at $2.8647 for a retest of support.
If the movement seen from 15th of December was the corrective it could have ended as a three-wave correction to the upside in which case a trend continuation would have started, but considering the corrective price action, I don’t believe that the correction ended.