On a day that most major cryptocurrencies dropped, EOS was among the biggest losers in top 10 with an 8% loss by the end of Tuesday’s trading day.
Ranked 5th on the coin market cap list, EOS/USD is testing the key support level of $7.30 at the time of filming. This level was tested multiple time end of June and ultimately was able to hold EOS’ price from dropping further.
Historically too, this level is not only the 78% Fibonacci retracement level but has acted as a key support multiple times beginning of 2018 and end of 2017. The only time that it was broken was on March 7th, 2018, which opened the doors for EOS to drop to the next key support level of $4.45.
Moving well below the daily cloud of Ichimoku Kinko Hyo on the daily chart, a break below this level could mean the $4.45 price level could be revisited. Otherwise, the price could start developing a double bottom chart pattern, resulting in a bullish reversal. With that, all we can do at the moment is to wait and see.
While the whole crypto market was down on Tuesday, EOS saw a bigger drop mainly because of a number of technical difficulties on their platform. Over the weekend, EOS block producers crashed due to a RAM-related complication. It appears that shortly after the overall RAM usage on the platform passed the 1GB mark, the nodes of a number of block producers – the EOS equivalent of Bitcoin miners – suddenly crashed.
If the network is unable to resolve the problems fast, it could take the toll on EOS price.
*This article was originally published here.