Price Analysis as EOS Starts Looking Higher

EOS (EOS) has joined the rest of the market in moving after a disastrous couple of weeks.

The coin is currently trading around the $2.7 mark (Bitfinex data) with the aim of increasing gains in the coming days.

It was announced recently that Huobi, a Singapore-based cryptocurrency exchange, is planning to launch their first crypto exchange dedicated to EOS. The decision has been made in order to “address customer demand.”

Huobi is currently the third biggest crypto exchange in the world based on the daily traded volume according to Coinmarketcap.

The launch is planned for the first quarter of 2019, in a move to allow its customers to take both long and short positions on EOS. The maximum allowed leverage will be x20.

Looking at the daily chart below, the EOS is still trading near the 2018 low of $1.55, made on December 7th. Since then, the price has been moving higher until it touched the first horizontal resistance (the upper purple line) around $3.2.

Graph 1. EOS (EOSUSD) daily chart

If EOS clears the first resistance, the next barrier is located around the $4.0 handle, which represents the March 2018 low. This resistance is followed by the confluence of two trend lines – the ascending red and a descending blue – that create a resistance block in the range of $4.5 – $5.0.

On the downside, the price is still supported by the 2018 low. On the Fibonacci retracement scale, the price is below the ultimate support level of 88.6%, perfectly symbolizing the crash of the EOS price in the second part of 2018.

EOS is currently the fifth biggest digital coin in the world with a market capitalization of $2.45 billion.

The coin rose to fame after completing the world’s biggest ICO in April 2018, worth more than $4 billion.