TradeCityPro | EOS: Navigating the Downtrend & Key Support Level

👋 Welcome to TradeCity Pro!
In this analysis, I will review the EOS coin. This project is one of the Web3 initiatives and currently holds the 76th position in market capitalization with a market cap of $941 million.

📅 Weekly Timeframe
In this timeframe, EOS is clearly in a descending channel, showing a significant divergence from Bitcoin’s trend. While Bitcoin has reached new all-time highs and continues forming higher highs, EOS remains in a long-term downtrend, printing lower lows within the channel.

🔍Following Bitcoin's breakout above 70,000, EOS rebounded from its 0.4143 low with strong buying volume, breaking the channel’s upper boundary. However, it faced rejection at the 1.31002 trigger level and has since retraced to 0.5514 as Bitcoin enters a consolidation phase.

✨ The 0.5514 zone overlaps with the channel’s midline, forming a Potential Reversal Zone (PRZ) that could temporarily prevent further decline. However, with increasing selling volume, EOS might continue lower after some ranging, potentially testing the channel’s bottom. The main support stands at 0.4143, though dynamic supports could provide better stability.

🔼 On the flip side, if EOS holds above 0.4143 and forms a higher low, there’s a possibility of trend reversal. The first real confirmation of a trend change would be breaking 1.31002, but the key level for confirming a shift to bullish momentum is 1.8695. Until that level is broken, the overall trend remains bearish. If a reversal occurs, the primary resistance would be at 6.5875.

💥 RSI currently lacks a clear trigger for momentum shifts, but entering overbought or oversold regions could serve as signals.

📅 Daily Timeframe
On the daily chart, EOS continues its corrective phase. After losing the Fibonacci support at 0.7599, the price has declined to 0.5959.

⚡️ This level overlaps with the 0.707 Fibonacci retracement, making it a critical support area that could prevent further downside. Right now, waiting for a new market structure is crucial for identifying better trade triggers.

🔽 For a short position, the first trigger is 0.5959, while a more secure entry would be below 0.5334, which coincides with the 0.786 Fibonacci level. If this area breaks, the price could fall to 0.4150.

✔️ For a long position, no strong trigger is available yet. A more conservative approach would be to wait for a higher high or a breakout above 0.7599 before entering with momentum.

🧩 RSI is nearing the 30 support zone, and if it breaks lower, it would confirm increasing bearish momentum. For a long position, breaking above 50 on RSI would indicate a bullish shift.



⌛️ 4-Hour Timeframe
Moving to the 4-hour chart, we can pinpoint intraday triggers for futures trading. A minor high and low have formed, providing potential riskier trade setups.

📈 For a long position, the first trigger is 0.6460, a high-risk entry as it aligns with the 0.382 Fibonacci retracement. If broken, the price could extend to the 0.1618 Fibonacci level, with a target at 0.7188.

💫 Key resistances for futures trades are at 0.8193 and 0.9374. Reaching these targets would be more likely if RSI surpasses 44.73 and approaches the overbought zone.

🕯 Currently, market volume is decreasing during this corrective phase, indicating volume convergence with the downtrend. A break below 0.5806 could trigger a short entry, with RSI entering the oversold zone, confirming further bearish momentum. Targets for this short position would align with support levels from the daily and weekly timeframes.



📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

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