- EOS has shown a considerably higher number of active users already compared to Ethereum.
- The market is now trading to support the $ 2.33 handle.
- Support in progress: $ 2.33, $ 2.15, $ 2.00, $ 1.89, $ 1.64, $ 1.50.
- Resistance going forward: $ 2.51, $ 2.87, $ 3.00, $ 3.19, $ 3.68, $ 3.92, $ 4.20.
Latest EOS news
According to data from dappradar.com, the first 5 EOS coms combined have almost 23,000 active users per day. In comparison, there are no ones who have 1,000 users active daily on the Ethereum network.
Use of EOS Dapp
Use of Ethereum Dapp
This is a significant result for EOS as their network continues to thrive in relation to the Ethereum network.
The biggest use anywhere can be largely due to the fact that EOS is able to handle a significantly higher transaction rate per second (TPS) than Ethereum. Currently the maximum TPS for EOS is close to 4,000 TPS, while Ethereum is able to manage only between 20-25 TPS at the maximum capacity.
In other news, Charles Hoskinson, the founder of the rival blockchain Cardano, has come forward and declared that he believes that EOS will see a violent regulatory reaction, in particular from the US Securities and Exchange Commission (SEC), due to the extensive ICO conducted by EOS which raised over $ 4 billion.
Since ICO has the potential to hurt US investors, since the current EOS market capitalization is around $ 2.14 billion, the SEC has every right to take action against Block.One, especially considering that the launch of EOC blockchain has arrived with stoppages, delays and phishing attacks.
We continue to take a look at the EOS / USD market and highlight any potential support and resistance areas in the future.
EOS price analysis
EOS saw a price reduction of 6.11% over the previous 24-hour trading session, bringing the current price to $ 2.33. The cryptocurrency has now seen a fall in prices of 11.98% over the last 7 trading days, with a further drop in price of 29% over the last 30 trading days.
EOS is ranked sixth in the ranking of market capitalisations and maintains a total capitalization value of $ 2.40. The EOS market has seen a 58% price fall over the last 90 trading days, as the 18 month project is now trading at a value of less than 88% of the all-time high price.
Looking at the daily chart for EOS / USD above, we can see that from ours last analysis, the price action reversed and continued to rise right in our expected resistance zone provided by the short-term 1.618 Fibonacci extension level (drawn in blue) for $ 3.17.
This resistance was further strengthened by the Fibonacci .382 retracement level (drawn in red) for $ 3.19.
As the market hit this combined resistance zone, the short-term EOS / USD upward trend stalled and rolled over. EOS has returned slightly back until it reaches the current level of support provided by the short-term level. 5 Fibonacci Retracement (drawn in green) for $ 2.33.
After the reversal of the short-term uptrend seen in mid-December, price action has been restored and is now being negotiated in a neutral trading condition.
In order for the EOS / USD market to be considered bullish, we should see the price movement disrupted and close above the resistance around the $ 3.20 handle.
If EOS / USD breaks below $ 2.00, we might expect the previous downtrend to take the upper hand and push prices upwards to $ 1.60.
Where is the support for EOS below $ 2.33?
If sellers continue to drive prices below short-term support .5 Fibonacci retracement level (greened), we can expect additional support to be found at Fibonacci retracement levels .618 and .786 (drawn in green), priced at $ 2.15 and $ 1.89 respectively.
Additional support below $ 1.89 can then be located at the previous 1.44 Fibonacci Extension level (drawn in purple) for $ 1.64.
What would happen if the bulls started to push the price of EOS again?
If the bulls hold $ 2.33 support and start pushing prices higher, we can expect the immediate upward resistance to be localized in the short term .382 Fibonacci retracement level (drawn in green) priced at $ 2.51.
This is closely followed by the short-term Fibonacci 1,272 extension level (drawn in blue) for $ 2.87.
If buyers can continue to rise above the $ 3.00 handle, it is possible to find a higher resistance to the combined strength reported above at the Fibonacci retracement level of 382 degrees (drawn in red) at the price of $ 3.19.
An additional resistance above the $ 3.20 handle can be found at the Fibonacci medium-term extension level of 1.27 (drawn in purple) for $ 3.68. This area of resistance is further strengthened by the Fibonacci .5 level of retracement (drawn in red) which is evaluated at a similar price level.
What do the technical indicators show?
The RSI has recently broken below the 50 mark to indicate that the bears have regained control of the market.
If the RSI continues to fall, we can expect that the price action will stop the support at $ 2.33 and head lower to the $ 2.00 handle.
The high number of daily active users speaks of volumes concerning the EOS network usage rate, especially when compared to that of Ethereum. However, leading figures in the industry continue to believe that the $ 4 billion ICO still requires a review by the US SEC, which could lead to problems for EOS.