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EOS/USD sentiment analysis: Bears close out market with a 2.7% loss

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  • EOS/USD was one of the biggest losers among the top coins as the market came to a close this Wednesday.
  • Price went down from $3.72 to $3.62.

EOS/USD bears ended up on top this Wednesday as they took down the price by 2.7% from $3.72 to $3.62. This made EOS/USD one of the biggest losers on, what has been, an extremely slow day for the crypto market. The bulls need to defend the critical $3.50 support line even though it doesn’t look like the bears have the momentum necessary to break through.

EOS/USD daily chart

The EOS/USD daily chart forms a triangle which is prime for a breakout. Critical supports lie at both $3.50, as already mentioned, and the downward trending. While the market is trending below the 20-day simple moving average (SMA 20) curve, it is trending above both the SMA 50 and SMA 100 curve. The market is also in the middle of the 20-day Bollinger band which suggests that the market isn’t as bearish as it can be. The moving average convergence/divergence shows a slight increase in the bearish momentum towards the end.
News Source: fxstreet

EOS

Everyone’s Worst Fears About EOS Are Proving True

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  • EOS is the world’s seventh-largest blockchain by market cap, with a value topping $3 billion since February 2019.
  • However, the project has long been plagued by fears that its structure was too centralized, and now the lion’s share of entities that govern the chain are in China, prompting fears of state intervention.
  • EOS contributors devoted to building decentralized apps (dapps) and development tools for the blockchain are losing clout – and making little or no money from contributing to the health of the ecosystem. One of them publicly disavowed the blockchain earlier this month, citing the excessive power of the largest EOS token holders.
  • Block.One, the company that launched the code behind EOS following a $4.1 billion ICO, is the largest token holder. Critics say it could easily redefine governance on the chain but has yet to take action.

In early September, one of the small companies that helped to get the EOS blockchain off the ground called it quits.

EOS Tribe, which participated in the launch of the first EOS chain, announced on Steemit that it was stepping away from EOS as a block producer (BP) candidate, focusing on other blockchains and other implementations of the EOSIO software.

EOS Tribe’s Eugene Luzgin wrote in the post:

“We at EOS Tribe have never participated in the game of vote trading and stayed true to our principles, and hence while we leave EOS as Block Producer, we are also free to speak truth and give warnings to the rest.”

Which, as they say, is a lot to unpack.

Luzgin left, in short, because he said it is no longer possible to earn funds for maintaining the blockchain without support from major EOS whales, the colloquial term for those with very large token holdings. Those whales are overwhelmingly supporting BPs located in China. There are 21 BPs at any time who establish consensus on the chain, make governance decisions and earn substantial rewards.

This has become a widespread point of concern among longtime participants in the EOS community, for reasons that include centralization and threatened censorship-resistance, according to an investigation by CoinDesk.

The BPs that Luzgin believes have the strongest technical proficiency have overwhelmingly been relegated to lower-tier rewards or no rewards at all.

“They effectively have a brain-drain now,” Luzgin told CoinDesk in an interview.

He’s not alone in his concerns, though it might be easy to dismiss doubters’ complaints as a simple East-West divide – two EOS constituencies that literally speak different languages failing to build a consensus about the protocol.

There is no proverbial smoking gun showing that the present configuration of BPs is bad for the $3.8 billion blockchain, but there is a mountain of evidence bolstering the case for concern.

DPoS in action

EOS is the world’s seventh-largest blockchain by market cap as of this writing. It went live in June 2018, after a yearlong initial coin offering (ICO) that raised $4.1 billion in crypto for Block.One and a tumultuous process following the release of EOSIO software, the code that powers EOS and its forks.

The chief feature of EOS was always its most controversial: EOS uses a consensus model called delegated proof-of-stake (DPoS), where higher throughput is achieved by decreasing the number of nodes that participate in consensus.

Before EOS launched, the configuration was widely panned by crypto investors as too centralized. Blockchain Capital’s Spencer Bogart shared an opinion held by many in April 2018 when he wrote that blockchains that compromise on permissionless-ness “will end up as less efficient varieties of today’s centralized platforms.”

DPoS can take many forms, but on EOS, 21 nodes have all the power over the chain. These 21 nodes are chosen by token holders, who stake EOS coins in a vote for up to 30 BPs. The ones with the most votes serve in the top 21, and the vote is effectively continuous. That means BPs can move in and out of the top 21 at almost any time.

As of this writing, a majority of the BPs indicate their locations as within China. Sources tell CoinDesk that multiple others are also located in China despite outward appearances.

CoinDesk surveyed all the top BPs as of Sept. 6, with questions about what they viewed their role on the blockchain to be and how they were supporting its users. Six sent back detailed answers. CoinDesk found no way to contact three others.

To produce blocks

The top 21 earn significant revenue, and another roughly 50 (this number is not fixed) earn meaningful revenue as standby BPs, both sharing a portion of the 1 percent annual inflation of EOS tokens.

With EOS Tribe’s departure, Aaron Cox of Greymass, a BP candidate, told CoinDesk:

“I can’t help but think that’s the new trend. This downward spiral (which ultimately is just a race to the bottom) isn’t a good situation to be in, as rent seekers continue to take over. And if it continues will probably become more dire as more of us are cut off.”

Many BPs that were once often seen in the top 21 now no longer even qualify for rewards as standby BPs, including BP candidates such as EOSSphere, ShEOS, EOSAmsterdam, EOS Detroit, EOS Dublin and EOS Venezuela.

Greg Simpson built EDNA, which is designed to enable users to monetize their genetic information, with the original EOS in mind. EDNA is a decentralized application (or dapp) running on the software Block.One created.

But these days he’s hedging by using EOS and its two main forks, Telos and Worbli, because of uncertainty about EOS due to what he perceives as inadequate governance.

Still, he’s not ready to give up yet. This has been a rapidly changing space.

“It wasn’t this space three months ago. And it won’t be the same space three months from now,” Simpson said. “Really no one can project out what it’s gonna look like in a year.”

Either way, EOS has not proved to be the high throughput chain beloved by enterprise clients that its progenitors touted it to be. Mainly, it has become a chain for running gambling dapps.

Luzgin lamented developers who have put all their creativity into EOS moving down into standby BP or even unpaid status. He pointed to companies like Bitfinex and Huobi who are participating in its consensus.

“EOS is a just a side gig for them. It’s just extra revenue,” Luzgin said, comparing the exchanges to companies that are all-in on the blockchain’s potential. “That view is very different. They aren’t really participating in the community.”

Huobi and Bitfinex were among a handful of BPs that never replied to CoinDesk’s inquiries.

Outsider history

EOS has faced skepticism from the broader crypto world from the start. Shortly after EOS launched, crypto scions looked askance again when the leading BPs moved to right a wrong.

Among their first collective acts, BPs froze seven accounts that had been shown to hold stolen tokens (tokens attained by tricking users during the migration of assets from ethereum – upon which Block.One ran the token sale – to the actual EOS blockchain).

The decision to freeze those accounts presaged the controversy the blockchain is facing now, because the top BPs did so without any kind of agreed-upon governance process. A “constitution” had been drafted, but it had not passed a referendum of EOS users.

It was never entirely clear where legitimacy originated from on EOS, but when the chain started, 15 percent of the tokens needed to be staked for a vote in order for it to launch. So that 15 percent figure became the consensus figure for giving a governance document legitimacy, but it never happened.

That consensus was documented as a rule in a draft constitution that never got ratified.

One of the BPs at the time, EOS New York, wrote after the vote to freeze the seven accounts about its ambivalence in freezing funds without any legitimized authority to do so.

The organization’s statement read:

“As a community, it should be our top priority to develop the mechanisms that are capable of polling the token-holder community and obtaining the on-chain consensus required to move issues, like the Constitution, forward.”

EOS New York was one of the original 21 BPs at the chain’s launch.

Eventually, EOS would jettison the whole idea of a constitution for governing the chain. Dissatisfaction in the community around governance would grow, which brings us to today.

Brock Pierce, an early member of the Block.One team and still an active member of the EOS community, would make waves in June 2019 with a speech at the Tulip Conference when he suggested that EOS is now governed by a “Chinese oligarchy.”

And while it’s true that a majority, if not a supermajority, of BPs right now are based in China, Cox of Greymass insists that the concern is not specifically about China itself. He told CoinDesk:

“The threat itself in this centralization is due to shifting regulations and potential risks they may pose. If the BPs for EOS were 90 percent in India, Brazil, or any other country – the same concerns would still be valid in regards to centralization.”

In his post, EOS Tribe’s Luzgin noted that shortly after EOS launched it started to see BP candidates joining the top 21 who hadn’t participated in the launching of the chain at all, propelled there by supportive votes from whales. By the summer’s end, Block.One, still the largest holder of EOS, started to make noise about voting its stake in favor of the teams it deemed the most technically proficient.

Block.One holds so many tokens that it could all but handpick the top 21 BPs (or at least exclude any BP that did not get its nod). Yet more than a year later, it still has not cast its first vote.

Shortly after the Tulip Conference, Block.One CEO Brendan Blumer wrote a post on the main EOS Telegram channel, where he addressed a number of issues without getting very specific. On voting, he wrote:

“EOS governance is tricky and is not something we’ve chosen to ignore, but have been waiting for the right time to get involved, and in a way that upholds and furthers aligns and decentralizes the community.”

Today, here’s what EOS governance has settled on: At any time, any decision can be made if 15 of the 21 BPs move to support it. It doesn’t matter if in the next set of blocks those BPs change dramatically. To reduce the prior decision, that new set of BPs would need to establish a new supermajority of BPs.

There is a system in place to run a vote across all EOS holders, but now, according to EOS New York, referenda are simply a way of gauging the interest of holders.

Dapp disappointment

One of the complaints that members of the community often make about the current crop of BPs is that they don’t prioritize building new dapps that will attract other users to the blockchain.

The theory had been that BPs would use inflation rewards to fund new tools, code improvements and dapps to improve the ecosystem. One of the first consequences of EOS’s failure to agree upon a shared decision-making process was the burning of approximately $167 million in the EOS savings account that had been designated for the worker proposal system.

As previously reported, the proposal system had been a way to fund dapp development on EOS (as well as community functions, lobbying costs and security audits), but without a way to agree on how to distribute the funds, they just accumulated, diluting the market cap to no purpose.

So, all 34 million EOS got burnt on May 8, 2019 – with potential funding for thousands of new applications going with it.

Broader changes were already underway as that decision was finalized, though. In February, EOS New York proposed an EOS User Agreement (EUA). In April, the EUA was ratified by 15 of the 21 BPs at the time, according to a spokesperson for EOS New York, who took a role shepherding it through.

What’s notable about the EUA is what it doesn’t address: in particular, vote-buying. The interim constitution explicitly forbids vote-buying but the EUA is silent on the topic.

There had always been a concern that EOS BPs could protect their lucrative position on the network by sharing block rewards. A top BP can earn about 900 EOS a day, which works out to over $1 million per year at current prices.

Said Greymass’s Cox:

“EOS was one of the few DPoS blockchains where [vote-buying] wasn’t happening until earlier this year with the introduction of the EUA. Many (maybe the majority?) other DPoS blockchain operate under this model, some even with it baked right into their protocols.”

In an email to CoinDesk, Newdex, a decentralized exchange on EOS, explained how its affiliated company, Newpool, spends its block rewards.

“More than 90 percent of the pool rewards will be given to token holders, that incentivizes token holders to hold EOS tokens for long and also increase their participation in the community,” a spokesperson for the company told CoinDesk.

Another highly rated BP, Big One, also welcomes participants to stake votes for the blockchain and profit for doing so. Infinity Stones invites staking on any number of protocols, including EOS.

“The thing about vote-buying is that at this point there’s technically nothing against the ‘rules’ about it,” Cox said. “There’s not much value-add happening in this new market dynamic, just the shuffling of meaningless inflation.”

Whatever anyone thinks morally about the optics of vote-buying, the consequence is this: BPs engaging in vote-buying invest in ensuring their leadership positions and not in the actual ecosystem. That’s what frustrates those who want to see EOS grow.

EOS Tribe’s Luzgin calls it the difference between “builders” and “miners.” Builders, he argues, want block rewards to fund larger contributions. Miners want the block rewards. The latter strategy has been rapidly gaining ground.

Vote-buying to guarantee block rewards raises a philosophical question: Is it appropriate to expect BPs to spend part of their resources on new tools and dapps?

Where is it written that that’s an obligation of BPs? The answer: It’s not.

There was a consensus among those who participated in the launch of the blockchain that a BP should be reinvesting in EOS. In fact, the thinking then was that a company could earn votes from community members for their BP candidacy by building good, widely used tools. That strategy hasn’t held up.

And not everyone agrees that it should even be an expectation. One BP, EOS Wiki, responded to a question about what the company had done to help create new dapps via a statement delivered via Telegram:

“We would not answer this question although we are incubating dapp/app. All is because this is not a ‘legal duty’ of being a block producer, please read the EUA.”

Performance consequences

Some sources hint that there have been bad signs for the fundamental performance of the blockchain. Others say everything is mostly fine.

“We see top BPs missing not just blocks but whole rounds,” Luzgin told us. “They are supposed to produce 12 blocks. They miss all 12.”

Here’s what CoinDesk has been able to discern: One of the BPs that Greymass and EOS Tribe still pointed to as a builder of useful things on the network and one that still mostly manages to stay in the top 21, Attic Lab, out of Ukraine, was able to point to one particular metric where it stands out.

Aloha EOS has tracked a benchmark test for BPs since the very early days, and Attic Lab has consistently scored the highest on those measurements. Aloha EOS scores the benchmark by asking each BP to run a calculation and timing it. Recently, Big.One, the second-most-backed BP, and the BPs run by two exchanges (Bitfinex and Huobi) have scored the lowest.

Another way that dapp developers see EOS as losing ground is in the area of application program interfaces (APIs). APIs make it easier for apps to query the state of the chain and push transactions. The most robust APIs allow a dapp to query the full history of EOS. Since the blockchain is generating thousands of transactions, this is an expensive service to offer.

Cox argued:

“BPs should be providing API access since they are the ones building the actual blocks, and providing direct access to their internal networks (through APIs) gives users a direct path to submit transactions.”

On Sept. 6, 11 BPs were currently providing some kind of API at that time, according to Cox. There are different APIs and different levels of quality of APIs, too. Cox said that many dapps have told his company that its is the fastest, this despite the fact that Greymass is, lately, a standby and not a full BP.

“Subjectively, it feels wrong that the lower-ranked BPs are the one shouldering this cost,” he wrote, while also noting that a good API requires hardware and skill to run, such that even well-funded BPs may not be equipped to run one.

“As the blockchain grows, it will be harder to catch up,” EOS Tribe’s Luzgin said, because it’s such a gigantic amount of data.

On Sept. 13, EOS Nation’s BP scanner only showed two entities providing full-history APIs.

EDNA’s Simpson told CoinDesk that the unreliability of some BPs required EDNA to revise its code so it checked more than one API, for when some weren’t operational or when blocks were dropped.

And it is worth noting that there are other services a BP can provide that can also benefit the community that don’t fit neatly into these buckets.

For example, CertiK, a security company, noted that it provides security services to the network rather than APIs. Newdex said it directed votes to BPs providing useful services in order to help them earn funds.

Meet.One has been providing news about EOS in Chinese languages for that audience, contributing code updates, new developer tools and funding meetups in China.

Still, most of the leading BPs simply didn’t reply to CoinDesk’s questions about the current controversy around the blockchain’s leadership. This controversy is well-trod ground within EOS and its many, many Telegram channels.

Those who believe the blockchain needs to advance await some kind of resolution. EDNA’s Simpson assessed the current crop of BPs, held in place by large positions taken by a relatively small number of users, and asked:

“What is it that’s driving the vote? It’s certainly not innovation. It’s not production. It’s not making the blockchain more useable.”

What’s being done

Maybe EOS is fine. Maybe it’s in trouble. Either way, it’s worth casual investors knowing that a cadre of adherents to the protocol since the early days are growing concerned.

At this stage, there is no one prevailing cause for concern about EOS. It is a blockchain seeing a large amount of use, but it also has not yet attained the status of a blockchain that attracts major companies looking for a highly secure database with high throughput. That’s what its strongest adherents had hoped it would become.

“Block.One kind of screwed up royally because they could have used their leverage to steer in the right direction, but they chose not to do it,” Luzgin said.

Perhaps most tellingly, Block.One itself has yet to launch (or really say anything more about) the service it announced in June with a glitzy and expensive rollout, Voice, its completely de-anonymized Facebook competitor. Block.One said the service would be built on the public EOS blockchain.

Lumi Wallet recently compiled a comprehensive list of reform proposals floated by different parts of the community, assessing the pros and cons of each approach.

Lumi CEO Diana Furman told Coindesk:

“I was convinced that change is needed by the very fact of the discussion – we have been following the EOS community for long, and everyone, from ordinary users to the main figures of Block.One, has been discussing this topic. If there is a discussion, it means something needs to be done.”

Meanwhile, whole other chains have expressed their preferences for change by forking the blockchain and opening new instances of the EOSIO software. The two most notable implementations are Telos and Worbli.

Telos has added a number of innovations that ensure potential BPs are actually ready to serve, but its most notable reform was made in its genesis block, where Telos capped every account’s token holdings at 40,000, thereby curtailing the power of whales on the network.

Worbli was created with financial regulation and certain consumer protections (such as account recovery) built in, with a focus on the financial industry.

Meanwhile, the broader community is waiting on Block.One to make any kind of move at all. Some have pushed it to turn a portion of its tokens over to a proxy, permitting users to deploy them as they saw fit, even to just enforce a rotation of BPs.

“Any centralized blockchain will be looked down on,” Luzgin said. “I really like the technology behind it. … [It’s the] governance that’s screwing it now.”

Block.One did not comment to CoinDesk as of press time.

Cox summed up the situation this way, expressing a wary sentiment shared by many who have remained involved with the EOS blockchain:

“Evidence is hard to come by in concrete examples of damage, and even as to why any of this is a bad thing. I do at this point think we are just seeing the tip of the iceberg though.”

Source:coindesk

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Understanding the exploit that made EOS.IO “unusable” for two hours

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On Sept. 13, an attacker flooded the EOSIO network to drain $110,000 in EOS from a gambling dApp. During the process, many user-facing applications were unusable due to congestion. Here’s how the hacker did it, in detail.

Basics of the network congestion exploit

Four days ago, an attacker pushed the EOS network into “high congestion mode” as part of a smart contract exploit. The maneuver temporarily made some free network resources unavailable, making many applications on the network “unusable” to smaller token holders for over two hours.

Although the network was still accessible (for example, a block explorer would still work), many were “prevented from publishing updates” or “doing anything actively on the chain” unless they paid for prohibitively costly network resources.

At the peak of network congestion, it required nearly 12 EOS to make a single feeless transaction on the network, said one community member. For context, Most blockchains attach a fee directly to transactions. EOSIO allows users to stake their tokens in exchange for network resources.

The attacker was able to rent a huge amount of network resources on a recently opened resource exchange. These resources were leveraged to select which valid transactions would get included on the blockchain to manipulate gambling dApp outcomes.

During this time, the maintainers of the gambling dApp did not have enough EOS on hand to take their contract offline (or take any preventative actions at all). This allowed the attacker to drain the smart contract for 30,000 EOS, at the cost of 300 EOS in rented network resources, at their leisure.

Identifying the attacker

Beginning Aug. 17, the user “mumachayinmm” started conducting tests against a variety of gambling dApps. After just under a month of testing, mumachayinmm rented the equivalent of 1.45 million EOS in network resources.

Previously, this would have required some $5.8 million in tokens. But REX, a new service launched in May, allows users to stake their EOS for security and voting purposes while selling the network resources their stake entitles them to. After REX, 1.45 million EOS in network resources cost just $1,200.

Resources on the attacker's account
Source: Bloks.io

On Sept. 13, mumachayinmm started flooding EOSIO with hundreds of thousands of transactions.

Spam transactions
Sample of some of the attacker’s spam transactions. Source: Bloks.io

Technical details behind the gambling dApp exploit

EOSPlay is a decentralized gambling dApp that offers games such as poker and dice. What made the service exploitable was how it generated random numbers for these games.

Instead of using a secure source of randomness, EOSPlay used the EOSIO blockchain as its source of entropy. Unfortunately, information on a blockchain can be manipulated.

As an example, on Bitcoin miners who find a block get to select which transactions are included at their discretion, so long as they’re legal transactions. Theoretically, if a dApp used transactions on Bitcoin to make calculations then large miners could game it.

On EOSIO, a similar way to manipulate the blockchain is to amass enough network resources to include whichever transactions are desired over all other users.

Specifically, what the attacker did was put deferred transactions into each block, said Dexaran, a respected smart contract developer. These blocks were the ones EOSPlay used to calculate random numbers.

By monopolizing network resources, the attacker could then calculate the random number before the contract could. If the number was a losing number, then the deferred transactions started an “infinite loop,” pushing random number generation to the next block, said Dexaran.

The maneuver allowed mumachayinmm to win on EOSPlay over and over again.

Illicit EOS winnings
Tens of thousands of EOS in illicit winnings. Source: Bloks.io

EOSPlay helpless during the attack

To make matters worse, the maintainers behind the gambling dApp did not stake enough EOS to cover their contract operation costs when EOSIO’s conservative mode was triggered. This was an oversight on the part of the maintainers.

With network resources monopolized the maintainers needed to have enough liquid EOS on hand to ensure a transaction to halt the contract would go through. It appears they didn’t have the tokens on hands, allowing the attacker to bide their time as the contract was drained.

These spam attacks aren’t unique to EOS. Networks such as Bitcoin and Ethereum are also vulnerable to spam attacks should a wealthy token holder wish to pay for them (though they are prohibitively expensive in most cases).

Block.one executives respond

Block.one CTO and creator of EOSIO Daniel Larimer took to Twitter to dispel the “FUD” around the network congestion attacks. He asserted the network was “working as intended”:

Yet, these assertions are in conflict with Larimer’s May 2018 comments while he was touting the “feeless” design of EOSIO:

“On EOSIO, no single user has the ability to saturate the entire network no matter how much money they’re willing to spend.”

Yet, that is exactly what happened during this exploit. The attacker saturated the network by spending a paltry $1,200.

Block.one CEO Brendan Blumer also took to social media to defend EOSIO. Though, he was rather vague on specific actions until pressed by a community member.

If a user stakes EOS they will always have access to network resources, he claims. But the amount will vary substantially, and when paying customers are using it all, it’ll be necessary to pay to maintain the same level of access, stated Blumer.

Issues raised

The recent exploit raises serious questions about the EOSIO blockchain. Jared Moore, an active community member asked: If the network is at risk of sudden spikes in resource cost, how much liquid EOS should developers have on hand to ensure they’re protected? Without guidance, dApp developers will continue to be vulnerable to these kinds of exploits, he argued.

Another issue is access. As EOS gains more usage it’s likely the network will eventually enter a state of constant “high congestion mode,” voiced another enthusiast.

This means developers and corporations, rather than small-time users, will dominate access to resources on the network—raising questions as to who the network is built for. These same corporations could also monopolize resources on the network, said Moore, in essence becoming gatekeepers.

On the bright side, such a scenario would make EOS like owning land, said another commentator, giving the token value through the network resources it entitles the owner to.

Dexaran, a security engineer and the creator of the ERC-223 token standard, made the following suggestion to mitigate future congestion attacks on dApps:

“It would be nice to calculate how much EOS you need to put into a ‘reserve’ account to make sure you have access to your contracts even during harsh congestion,” he commented.

Another community member voiced a need for better ways to calculate staked EOS needs under different network conditions:

“The key issue here is that the community has gotten used to the amount of free transactions they receive when the network is relatively unused. We need better estimates of how much EOS you need staked during different network conditions.”

He went on to describe problems with how staking is treated on the network.

“I also have a really big issue with the fact that EOSIO does not prioritize ‘staking’ transactions. When these conditions happen, folks attempting to stake more EOS should be allowed to (once per account) as a priority transaction. When I’ve paid for huge sums of EOS, it’s ridiculous when I get locked out and can’t allocate more to my account. I can’t ‘pay for more’ even if I wanted to.”

Designing a public blockchain is a complicated business. Things will go wrong. Right now, it’s very costly to build useful apps on any blockchain. Block.one executives should take the lead to make the development experience easier and less risky, paving the way for mass adoption, rather than maintaining hardliner positions that ‘nothing’s wrong.’

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EOS Price Analysis and Prediction for September 16th 2019 – Can EOS HODL $4 Support?

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It’s a great start to a new week for cryptocurrency markets. While there aren’t any big price changes, most markets are in the green today which is a great sign. EOS has finally reached the dreaded $4.0 support level. Let’s take a look at some relevant EOS news and see if anything caused that spike, we will also take a look at the charts and see what they have in store for us.

coinmarketcap
Source: Coinmarketcap

EOS News

The biggest news for EOS, and the main reason the price is exhibiting so much bullish momentum is due to the upcoming EOS version upgrade on September 23rd. As discussed in our previous EOS price prediction:

“THE BIGGEST DEAL ABOUT THE NEW EOS UPGRADE IS THAT IT WILL ALLOW DAPPS TO PAY USERS FOR THEIR CPU POWER.”

This new feature will give EOS a leg up on Ethereum and allow developers to create some truly revolutionary dApps. Ethereum is also gearing up for its ETH 2.0 upgrade on November so the two smart contract platforms are definitely going head to head.

In other not so positive news, NullTX reported how a hacker stole 30,000 EOS by exploiting a gambling dApp. The app in question is called EOSPlay and the hacker used the REX platform which allowed him to stake CPU power and in exchange “negate” other users’ transactions. An extremely clever technique that was going to be used to exploit an app by someone sooner or later.

EOS Price Analysis

eos price chart double top 9/16/19

Relative Strength Index: The RSI is currently at a healthy 43 points. It’s a bit low, but that’s expected given the recent slight price decline.

Bollinger Bands: The price is also leaning towards the low end of the band which most likely means it will stay at the current level for a few more hours at least.

Volume: The volume is surprisingly high at the time of writing. That’s most likely because it’s a start of a new week when market action usually picks up.

Double Top: With the EOS price dropping from a high of $4.15 to a current of $4.09, a double top pattern has formed. This pattern is extremely bearish, but the caveat here is that a double top usually signifies medium to long term trend change. Since we are looking at the 15 minute chart, we are dealing with short term trends. As such, there’s no reason to take the double top too seriously.

EOS Price Prediciton

Because we’re at the start of a new week, and with the EOS and Ethereum upgrades ahead of us, I’m going to predict that EOS will be able to hold the $4.0 support. Even though some news came out about the EOSPlay hack, 30,000 isn’t that significant and won’t have much of an impact on the market. On the other hand, with the new EOS version upgrade coming up in seven days, bullish momentum is in the works for the cryptocurrency.

On another note, it’s important to keep a good eye on Bitcoin’s price movements. As any big swings will have a similar effect on the rest of the crypto markets.

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