EOS looks set for a major directional move this month, as the cryptocurrency trades towards critical technical resistance.
EOS technical analysis shows that the cryptocurrency needs to move above the $3.10 level to encourage short and medium-term technical buying.
EOS/USD medium-term price trend
EOS appears increasingly bullish over the medium-term, after the cryptocurrency found strong dip-buying interest from the $2.30 level last month.
EOS price analysis shows that a breakout above the $3.00 resistance area could spark a rally towards the $4.00 area over the medium-term.
If bulls can anchor the price above the EOS/USD pair’s 200-day moving average, around the $3.00 level, then a rally towards the $4.00 level may take place this month (June 2020).
The daily time frame shows that the price is working within a large falling wedge pattern, between the $1.00 to $4.00 levels.
A breakout above the falling wedge pattern, the EOS/USD pair could rally towards the $7.00 area over the medium-term.
EOS/USD short-term price trend
EOS/USD price analysis shows that the cryptocurrency only has a bullish short-term bias while the price trades above the $2.60 level.
The lower time frames currently show that a large inverted head and shoulders pattern will form if price reaches the $3.10 level.
According to the size of the potential bullish pattern then the EOS/USD pair could soar towards the $3.90 level.
Repeated failure to rally the price above the $3.00 level could see the EOS/USD pair falling back towards the $2.50 support area.
Key support below the $2.50 level is found at the $2.30 and $2.10 levels.
EOS/USD technical summary
EOS/USD technical analysis shows that bulls need to move the cryptocurrency past the $3.00 to $3.10 resistance level. The $4.00 level remains a possible upside target.
