EOS Price Analysis: Next Breakout Imminent

  • EOS/USD is very much subject to an imminent breakout; eyes on confirmation of next committed direction.
  • Huobi DM has now added EOS to its tradable derivatives; users will be able to take long and short trades.

EOS/USD is readying its next move, as the price remains within consolidation mode for the time being. Looking over the past eleven days, it has seen a lack of commitment from either bear or bull camps.

A range-block can be observed, after the explosive push north which initially began back on the 8th December. EOS/USD has made itself comfortable well within the $2 territory, following the breach to the downside earlier in the month. Another breakout is imminent, but the direction is yet to be confirmed given the lack of technical indications on this for now.

Huobi Derivative Market (Huobi DM) Adds EOS

Huobi, the third largest cryptocurrency exchange in the world, has recently announced that their derivative market business will start supporting EOS. This being confirmed by Huobi via an official company press release. It is worth noting the sheer size of Huobi, which has daily volumes of more than $500 million.

Users trading via Huobi Derivative Market will be able to take both short and long positions using the EOS tokens. The statement noted that they will be allowing on the platform the following services related to EOS: arbitrage, speculation and hedging.

Fees and Trading Details

In terms of the fees for trading EOS as a derivative, for makers it is 0.02%; the take to open and close positions will be 0.03%. Leverage on the contracts will be up to 20x, supporting the usual price limit, order limit and position limit orders.

On this update, the Huobi Global CEO, Livio Weng said: “We’ve seen a great response to our Bitcoin and Ethereum contract services from a broad range of sophisticated traders. Along with that, we’re also seeing strong demand to expand Huobi DM to other coin types as well. Adding EOS contract service is part of our ongoing efforts to address customer demand.”

Technical Analysis – EOS/USD

EOS/USD daily chart. Price action is moving within a range-block formation, subject to a breakout.

EOS/USD from the 18th December has been moving within a range-block formation. The high can be seen at $3.22, which was printed on the 24th December. The low of the current range is $2.3276, observed between 27-28th December.

Should the bulls re-gather enough momentum to the upside, to then breach the 24th December high, eyes will be on a return to $4 territory. Between the range of $4-4.$50, this was previously an acting area of demand. It had been in play from March, right up until its was breached in November.

To the downside, a breakout of the low area $3.22, will initially see $2.18 called into action, which is 5th December low. A further exposure south by the bears could then force a full reversal of the recent December bull run.

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.