EOS recorded a strong performance in February, but this is being followed up in March with consolidation in price action.
This is reflected on the monthly chart with the March candle so far forming a Doji candle.
A Doji candle is a candle where the open and the close are around the same point and typically reflects uncertainty from traders.
The weekly chart shows that the last two weeks closed as Doji candles and this weeks price movements are so far forming a dragonfly Doji on the weekly chart.
A dragonfly Doji is where the open and the close are around the same point, but the price has traded lower. This shows a rejection of lower prices.
A dragonfly Doji can be interpreted in a number of ways. It is often taken as a reversal pattern after a downtrend.
However, in this case, it can be seen as more selling pressure entering the market.
So far, the selling pressure has been absorbed increasing the odds that price could follow up with a continuation of the price increases that took place in February.
The selling pressure found support at $3.27 and prices were quickly pushed back up.
The key resistance level to monitor if prices can move up from here is $4.15.
Price briefly moved above this level in February, but selling pressure quickly came into the market to push the price back down.
Ethereum is exhibiting similar price action to EOS after entering a period of consolidation.
A price drop yesterday quickly found support at $127.45.
The key resistance level to monitor above this point is $139.10 which has been rested several times since late February.
Price has been moving more towards the lower end of the range, increasing the odds that the next significant movement for Ethereum will be one to the downside.
The chances of this are further increased by the fact that the last significant move was one to the downside which took place in late February after price met resistance at $166.
Price has already moved below the $127.45 support level and has tested the level numerous times.
The last movement below $127.45 was a brief range expansion, and buyers quickly brought the price back above the level.
However, each test serves to further weaken the level with fewer buyers to hold the level on each test.
- A dragonfly Doji forming on the EOS weekly chart improves the chances of price continuing the upward movements seen in February.
- The key levels to monitor for EOS are $3.27 as support and $4.15 as resistance.
- The chances of a downward movement are higher for Ethereum as it continues to move towards the lower end of a range it has been trading in.
- The key levels to monitor for Ethereum are $127.45 as support and $139.10 as resistance.
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