Key points:
- EOS September Losses Questioned the Basing from June
- But End of Quarter Consolidation Maintains Bottoming Pattern
- EOS Forecasts For Q4 Remain Positive
The cryptocurrency EOS has been in a broader consolidation phase since the June bear market lows was posted, with losses from mid-September questioning the intermediate-term basing efforts. But the defence of supports onto the end of September and Q3 have sustained the border bottoming effort and leaves October and Q4 prospects back higher.
EOS September Losses Questioned the Basing from June
The EOS is a cryptocurrency that is based on a blockchain and decentralised platform which is primarily used to run, develop and host business applications and was launched in 2018.
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From mid to latter September, EOS has suffered price losses which have damaged the positive recovery theme that was witnessed from July through early September after the June-July basing. The break below chart supports at 125.50/124.22 and trend line support from July, questioned the June-September bottoming and recovery efforts.
But End of Quarter Consolidation Maintains Bottoming Pattern
Despite surrendering the aforementioned supports at 125.50/124.22 and trend support from July, the market held in latter September above next swing support at 106.58, at 110.30. The subsequent sideways consolidation into the end of the third quarter highlights hesitancy to resume a more negative theme and restart the H1 2022 bear market. This price action, therefore, sustains the intermediate-term basing phase and in the short-term points to a renewed recovery attempt into October and for the balance of Q4.
EOS Forecasts For Q4 Remain Positive
Into October, we see risks back higher whilst above the 106.58 swing support. The short-term bias is up towards chart targets from September at 138.24 and 149.00/150.34. Above here would then open risks still higher to 177.65 and even 194.50 in October.
For Q4 and into year-end, the threat would be for an overshoot risk up closer to targets at 288.54/ 317.18.
However, surrender of the July chart support at 106.58 would damage the intermediate-term bottoming theme and signal possible resumption of a more bearish phase. Targets below here would be the summer lows at 88.86, 87.00 and then the bear market low for 2022 at 81.51.
