EOS Price Analysis: Bulls Return Despite Vulnerability Detected by a Chinese Security Company

  • The EOS price on Tuesday manages to bounce back higher after a few sessions of cooling to the south.
    • A Chinese security company, SlowMist Technology Co. Ltd, recently detailed an EOS vulnerability.

EOS: Recent Price Behaviour

The EOS price is trying to find its feet again after a few soft sessions of late; it cooled as much as 12% over the past five days. EOS/USD has managed to regather some upside momentum, as the price heads towards a daily closure in the green. It was seen up with gains of 1.8% at the time of writing late on Tuesday. The price is moving within consolidation mode and has done so since 24th February after it ran into a massive area of resistance.

New EOS Vulnerability Discovered

SlowMist Technology Co. Ltd, a Chinese security company, recently posted via its official Medium findings of a vulnerability attack with EOS. They reported on Tuesday, claiming that the attack has already happened.

In terms of the details around the vulnerability, it was noted to have been related to a “false top-up. ” It has massive potential to occur to the likes of crypto exchanges, wallets and other platforms. As a result of the issue, it can impact the way they determine whether EOS deposit transactions have been successful.

The security company noted that “an attacker can successfully deposit EOS to these platforms without transferring any EOS.” Furthermore, the SlowMist team stated a real attack has already taken place and will provide additional details soon. It was noted to have been somewhat of a similar attack that occurred with the USDT and the Ethereum false top-up.

Moreover, SlowMist did put out suggestions to crypto exchanges, wallets and other platforms to suspend EOS deposits. Lastly, they advised this should all be thoroughly checked and ensure all verifications are not exposed, as this is a new type of attack.

Technical Review – EOS/USD

EOS/USD daily chart.

There has been a notable slowdown in bullish momentum after a decent run which took place early February. EOS/USD at the time broke out from a bearish triangular structure; this saw a fresh wave of buying pressure come into action. Meanwhile, the price has since seen a retest of the breached pattern formation, which has given the bulls right to push back north.

Furthermore, to the upside, there is a chunky area of supply which is currently slowing down upside momentum. The zone noted can be seen tracking from $3.77 up to $4.50, where the price saw a significant rejection on 24th February. EOS/USD has not traded comfortably above this region since November 2018. The bulls, however, are making a reasonable attempt to break it down. Should this be successfully exposed, eyes will be on a return to the pre-November fall levels up at $6.00.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

 Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.