EOS Price Analysis: EOS Has Completed a Significant Long-Term Correction and Appears to Be Building a New Bullish Impulsive Structure

EOS has completed a significant long-term correction and appears to be building a new bullish impulsive structure.

The price of EOS has surged in recent days, breaking out of a key resistance level. However, it has since pulled back, and it remains to be seen whether this will turn into a larger upward move or if the bullish momentum has already exhausted.

On the higher time frame, EOS has completed a significant long-term correction, which can be seen as an A-B-C-D-E structure on the chart. The final low of this correction was reached at $0.45, which can be considered the macro bottom.

From this low, the price of EOS broke out of a falling wedge in late March, which was followed by a five-wave rally. This rally confirmed a bullish trend shift from the previous multi-month downtrend.

Wave V of this rally peaked at $0.87, which also coincided with the 0.382 Fibonacci retracement of the entire macro decline from the 2021 high to the 2023 low.

After completing this rally, EOS entered a corrective phase, pulling back to a higher low of $0.58 before continuing its uptrend to a higher high of $0.99 on May 10. At this level, the price encountered resistance at the 0.5 Fibonacci retracement.

From the May 10 high, the price of EOS experienced a sharp downturn, reaching a low of $0.76 on May 15. This move also pushed the RSI into oversold values.

Following this oversold correction, the price of EOS spiked upward by 14%, testing the 0.382 Fib level. However, immediately upon this interaction, it fell back to $0.82, suggesting that the buyers were met with sellers at this resistance.

Currently, the uptrend is still intact as long as EOS stays above the diagonal support line connecting the previous wave ii and wave iv lows. If this trend resumes, the RSI has now reset to neutral territory, setting the stage for another leg up.

Overall, the structure favors a continuation toward higher retracements at $1.12 (0.618 Fib) and $1.30 (0.786 Fib) if the bullish structure remains intact.

However, considering the recent price action and volume, it could first continue for a lower low, concluding its corrective phase. This would complete the (a)-(b)-(c) structure on the lower time frame.

On the lower time frame, we can see that the initial impulsive rally from early April is now being followed by a (a)-(b)-(c) corrective structure.

This corrective structure is unfolding as follows:

The first swing low (i) at $0.77 completed wave i of this corrective structure.

Wave (a) ((1)-(2)-(3)) traced a lower time frame bat pattern, bottoming at $0.58, and (c) completed at $0.76.

This (a)-(b)-(c) corrective structure is unfolding in an A-B-C-D-E structure on the lower time frame.

Wave (b) peaked at $0.9972, forming a local top, then experienced a steeper decline to around $0.76, which can be considered wave (c) of this correction.

From this low, the price had a slight bounce, and the current price action is testing the 0.382 Fibonacci retracement from the April low to the May high at around $0.835, where it is also facing resistance from the descending trendline formed since the local top.

The RSI has also shown a mild bearish divergence, suggesting that if EOS fails to break above the 0.382 Fib level and close above it decisively, another test of lower levels at $0.786 or $0.75 is more likely. It also reached the oversold zone, which statistically suggests that a bearish reversal is more likely from this point than a continuation lower.

However, if the price manages to break above the descending trendline, the next bullish targets are at $0.904 (0.786 Fib) and $0.993 (local high).

Therefore, this area between $0.83 and $0.86 is critical. A clean breakout signals that the bullish structure is still intact and favors continuation, while rejection could lead to a prolonged correction or consolidation phase to complete the (a)-(b)-(c) structure.

Considering the underlying wave structure, the broader trend favors upside if the immediate support at the 0.236 Fib holds.

If we zoom out further, we can see that this entire move is unfolding as the final wave E of a larger A-B-C-D-E structure from the 2021 high.

This A-B-C-D-E structure