EOS Update: A Major Move May Be Coming

If I may, let me start by being blunt. Market direction is almost impossible to predict at the moment. Anyone telling you otherwise is full of it. With that in mind, let's try to make some sense of what's happening.

There's 4-5 different ways we can count the movement of EOS over the last few weeks. I'm going to discuss the 2 scenarios I feel are most likely.
During my last EOS update, I mentioned it may move sideways for a few days prior to making any major move. That's exactly what it's done. We're now seeing signs it may soon breakout of this consolidation pattern and break either up or down. Why do I say that?

Looking at the 1 hour chart, we can see EOS is operating within a descending triangle. As it approaches the apex, a breakout becomes more likely.

Looking at the 4 hour MACD and RSI, we can see it's also been operating within a wedge. This all suggests a decisive move may be coming in the near future.

Let's look at what a bullish breakout may look like....

I've re-evaluated my prior bullish count. If EOS is indeed still correcting from it's prior 5 waves up, I believe it's in a WXY pattern. If this count is correct, it's currently finishing an ABCDE correction. Once wave E completes, we'd expect an impulse wave up. Here's how it may play out:

I've also re-evaluated my bearish count based on movement over the last few days. The bearish scenario has EOS on wave 3 of 5 waves down. I've highlighted the sub-waves in yellow. There's a fairly solid support zone between $11.72 and $10.50. A drop below this support zone would validate this count. Here's how it may play out:

Finally, many have been asking about vulnerabilities found in EOS by a Chinese security firm.
More information on that can be found here: https://steemit.com/cryptocurrency/@workin2005/chinese-security-firm-says-huge-vulnerabilities-discovered-in-eos-network

Some have speculated this may delay the main-net launch scheduled for June 2nd. According to the EOS official twitter account, this rumor about a delay is inaccurate. Here's how the EOS team responded:

Source: https://twitter.com/EOS_io/status/1001697690890194956

It should be an exciting week for EOS. Let's see how it plays out.

BIAS:
Short Term: Neutral
Longterm: Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.

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Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly. Technical analysis is simply a guide. It doesn’t predict the future. Anyone that claims they know exactly what’s going to happen is foolish, lying or both. Technical Analysis should only be used as a tool to help make better decisions. If you enter a trade, I recommend having a stop loss and sticking to it. You will loose at times. The key is to have more wins than losses. With that in mind, I wish you great success.

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FYI…I just started a twitter page where I’ll post analysis, along with other relevant crypto data from myself and others. If you’d like to be notified as soon as updates reach Steemit, the twitter handle is @Workin2005