Bear markets have their unique commercial psychology. Often, when a portfolio manager has a big loser in his portfolio, the temptation may be to sell a large absolute or relative winner to offset losses.
Looking at the big downdraft in EOS (11/30), it is possible that EOS will be hit by the sale because it was a "winner" related to Ethereum.
Looking at the EOSEthereum chart (Figure 1), we see that it falls below its 12-week moving average combined with a potentially bearish weekly candle. The 12-week moving average has been a good thing to use historically to a point that begins in big moves on EOSEthereum. Thus, it could work well to identify a change in the downward trend.
With the Bitcoin bounced blocked, portfolio managers could continue to sell EOS simply because it is a good relative performer compared to Ethereum.
Historically, it might be sensible to compare EOS to Bitcoin in the Mount. Gox days. In 2011, Bitcoin was announced as the new shiny object just as EOS was announced as a new improved version of the Ethereum blockchain.
If this comparison is true, EOS could end up touching the way Bitcoin did in 2011. In 2011, Bitcoin hit 76% of its 200-day moving average (Figure 2). If EOSUSD follows the same pattern, EOSUSD could reach $ 1.67 (Figure 3).
Bottom Line: Big Bear markets often make their way to standardize the best relative performers. EOS does not seem to be different. With the ECO ICO priced at $ .99 USD, there's plenty of room to go lower than $ 3.