The bad news came to EOS investors on Friday, 4 December. The local foothold for breaking the trend line of sellers, which is carefully protected from June 2019, was broken. Buyers were unable to keep the range of $2.96-3. Thus, the weekly candle on the EOS chart closed with a false breakout of the global line at $2.99.
The catalyst for the breakdown of $2.96-3 was the complete buyers’ passivity on 2-3 December, which was intensified by low trading volumes. So, the first signal of the local fall beginning of the EOS price was on 1 December. After the first attempt, sellers failed to take control of $2.96-3 and buyers had every chance to hit the gas. Although, in two trading days, buyers were only able to regain 50% of the lost price. A similar situation occurred after the break of the range $2.96-3:
Buyers need a better price
Unsuccessful trading on the weekend only confirmed that EOS buyers have retreated locally. And now they have taken a standby mode for a better price. In the previous article, we described a scenario if the price breaks the range of $2.96-3. The nearest liquidity zone is in the range of $2.4-2.56, which buyers have held three times since April 2020. This range is the only obstacle in the way of EOS sellers to $1.54. Having lost control over it, buyers actually admit that the growth trend from April 2020 is over and the medium-term initiative will pass to the bears.
Analyzing the nature of the BTC price fall, it is too early to talk about the end of the era of buyers. Therefore, the probable price reduction to the range of $2.4-2.56 can be seen as a new chance to buy EOS at a good price.
The return of the range of $2.96-3 under buyers’ control will be seen as a signal of a new growth momentum that will finally revive the EOS market. The first serious target in this scenario remains unchanged – $4.6-5.3.