Comparing EOS and Ethereum. Evaluating the dynamics and growth potential, looking at key levels and updating the scenario.
In this post, I've used candlestick analysis, panoramic market survey, market balance level analysis, oscillator analysis, key level analysis, and trend analysis.
There is much talk about which of EOS or Ethereum is cooler, and everybody is constantly comparing them. This topic can be discussed for a long time, because both of them have Napoleonic plans and a powerful team behind their backs. However, comparing them from a fundamental point of view will not be quite correct, since Ethereum is already a serious working business with more than one hundred cooperating companies and partners.
EOS compared to Ethereum is a very young start-up, which is still very far from the scale of the Ethereum.
It is impossible to talk about how much the EOS is overvalued or, on the contrary, undevalued, since by and large the economists have not yet come to an unambiguous conclusion how to correctly determine fair value of the crypto currency.
In general, we should not worry about this. After all, most participants in the crypto currency market are people who came to make money on price movements, so, first of all, we are interested in which will grow stronger, ETHUSD or EOSUSD, and which will make us a lot of money.
In order to understand this, we will do a comparative technical analysis of the crypto currencies and see which is better on the market and has a better chance of growth in the near future.
As you can see from the EOSUSD chart above, EOS followed Ethereum for quite a long time, allowing small bursts due to its low price, but by mid-April, it flew out of the nest on the hype around the launch of its own blockchain.
As we see, the descent to the current values is nothing more than a correction by the size of the bloated bubble from the sensational news about the EOS transition to its network.
As we can see in the chart above, the candle of the current month in both the EOS chart (left side) and the ETH chart (right side) have struck the last month's low, thus showing a bearish nature.
However, EOS, compared to Ethereum, did not reach April's low, which allows it to stay on current values.
As a result, EOS still has support at 5.10 USD - April's low. Ethereum, in the case of another bearish attack, can count only on 275 USD, i.e. therisk of drawdown by another 20 something percent is quite large.
Therefore, in this picture, EOS looks much safer.
In the weekly charts of two coins, the picture is not in favor of Ethereum either. We see that the trend line of Ethereum was punched with a candle from last week. I missed his point in the previous forecast for ETHUSD dated 07.08. The EOSUSD chart at that time was still in order and was at the level of the trend.
The breakout of the trend has given a strong signal to the bears, which cannot be ignored.
Following the logic of a strong correlation between the two instruments, we can assume that EOS will follow the older brother and also test the lows at the root of the impulse, around 3.87 USD.
Also in the EOSUSD chart (left half), the bearish divergence is strongly pronounced, which in the weekly chart literally screams about the impending collapse. In the ETHUSD chart, this divergence is not so obvious, although the fall of both assets began at the same time.
This is a great example of how you can use the strong correlation of all altcoins. That picture, which from the point of view of technical analysis is not visible for one instrument, can be obvious to the naked eye for another.
In a daily, weekly and monthly TF, such patterns simply cannot be purely internal affairs of the analyzed asset. Movements within large timeframes are almost always related to the general mood of the market, if, of course, we are talking about top-end crypto currencies.
Therefore, when finding a strong signal for one altcoin, don't immediately hurry to purchase, closing your positions, but rather make conclusions for those altcoins that you already have in the portfolio and take appropriate measures.
In the daily EOS chart, a bearish corridor is clearly traced, and the ticker adheres to the borders of it quite strictly. On the moving average MACD oscillator, we see an emerging cascade of bull convergences that allude to strong support and a local bottom. Nevertheless, the last price deviation looks much weaker and has every chance of being broken.
As we see in the daily chart of Ethereum, it reached its bottom and barely touched the average monthly level of Keltner, confirming its significance. Exit below is unlikely under such conditions in the next few days, although we do not observe any turning signals. Given the general picture in the monthly TF, the chances of going lower in the medium term are still great, and for Ethereum it is now more vital than ever to go down. The most likely scenario in such conditions will be consolidation in the green area in the next couple of days. In this case, it would be cool to go beyond the bearish channel, at least in the context of sideways movement, otherwise the risks of going to 275 USD will increase significantly.
To sum up:
In the end, following the principle of correlation and general weakness of EOS, I expect a repeat of the scenario for Ethereum with access to the root of a spring bullish wave. The target of the movement is the level of 3.87, where the favorable buy area for ETHUSD begins. However, I hope I don't have to talk about the risks of catching falling daggers. Before buying, it is important to wait for the exit from the bearish channel and the appearance of the first signals for the reversal.
If we have to make a conclusion on where to keep money now, in Ethereum or EOS, I'd say there is a high risk of drawdown for both, so fiat currency is the only salvation from uncontrollable drawdown at the moment.
In the short term, the price of ETH is still on its positions, and Ethereum looks more stable, but in the long term, EOS has more support levels, and in the case of a reversal of trend and the rise of bullish sentiment, this asset will rise much faster, for a relatively small cost and a deeper drawdown.
Good luck and good profits!
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Real-time price chart of EOSUSD
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.