The EOS blockchain has been growing in usage in terms of the number of active users utilizing their dapps each day, which has led to EOS significantly widening the gap compared to the usage of Ethereum dapps.
According to data from dappradar.com, the top 5 ranked EOS dapps combined have close to 23,000 daily active users. In comparisonm there are no dapps that have 1,000 daily active users on the Ethereum network.
This is a significant achievement for EOS as their network continues to flourish, relative to the Ethereum network.
Larger dapp usage may largely be due to the fact that EOS can handle a significantly higher transaction per second (TPS) rate than Ethereum. Currently the maximum TPS for EOS is close to 4,000 TPS ,whereas Ethereum is slated to only handle between 20-25 TPS at maximum capacity.
In other news, Charles Hoskinson, the founder of rival blockchain Cardano, has come forward and stated that he believes that EOS will see fierce regulatory backlash, particularly from the U.S. Securities and Exchange Commission (SEC), due to the overwhelmingly large ICO conducted by EOS that raised over $4 billion.
As the ICO had the potential to harm U.S. investors, as the current EOS market cap now sits around $2.14 billion, the SEC has every right to take regulatory action against Block.One, especially considering that the EOS blockchain launch came with halts, delays and phishing attacks.
Let us continue to take a look at the EOS/USD market and highlight any potential areas of support and resistance moving forward.
EOS has seen a price slide totaling 6.11% over the previous 24-hour trading session, bringing the current trading price down to $2.33. The cryptocurrency has now seen a price decline totaling 11.98% over the past 7 trading days, with a further 29% price fall over the past 30 trading days.
EOS is ranked in 6th position in the market cap rankings and retains a total market cap value of $2.40. The EOS market has seen a serious 58% price plummet over the past 90 trading days as the 18-month old project now trades at a value that is 88% lower than the all-time high price.
Looking at the daily chart for EOS/USD above, we can see that since our last analysis, price action had reversed and continued to climb right into our expected resistance zone provided by the short-term 1.618 Fibonacci Extension level (drawn in blue) priced at $3.17.
This resistance was further bolstered by the bearish .382 FIbonacci Retracement level (drawn in red) priced at $3.19.
As the market hit this area of combined resistance, the short-term EOS/USD bull run halted and proceeded to roll over. EOS retraced slightly until reaching the current support level provided by the short-term .5 Fibonacci Retracement level (drawn in green) priced at $2.33.
After the reversal of the short-term bullish run seen during mid-December, price action has retraced and is now trading in a neutral trading condition.
For the EOS/USD market to be considered bullish, we would need to see price action break and close above the resistance around the $3.20 handle.
If EOS/USD breaks below the $2.00, we could expect the previous bearish trend to take over and push price action back toward the $1.60 handle.
If the sellers continue to drive price action below the support at the short-term .5 Fibonacci Retracement level (drawn in green), we can expect further support below to be located at the .618 and .786 Fibonacci Retracement levels (drawn in green), priced at $2.15 and $1.89 respectively.
Further support below $1.89 can then be located at the previous downside 1.414 Fibonacci Extension level (drawn in purple) priced at $1.64.
If the bulls hold the support at $2.33 and begin to push price action higher, we can expect immediate resistance toward the upside to be located at the short-term .382 Fibonacci Retracement level (drawn in green) priced at $2.51.
This is closely followed by the short-term 1.272 Fibonacci Extension level (drawn in blue) priced at $2.87.
If the buyers can continue to climb above the $3.00 handle, higher resistance can be located at the combined aforementioned resistance at the bearish .382 Fibonacci Retracement level (drawn in red) priced at $3.19.
Further resistance above the $3.20 handle can be found at the medium-term 1.272 Fibonacci Extension level (drawn in purple) priced at $3.68. This area of resistance is further reinforced by the bearish .5 Fibonacci Retracement level (drawn in red) which is priced at a similar price level.
The RSI has recently broken below the 50 handle to indicate that the bears have regained possession of the market momentum.
If the RSI continues to fall, we can expect price action to break the support at $2.33 and head lower toward the $2.00 handle.
The sheer number of active daily dapp users speaks volumes regarding the usage rate of the EOS network, especially when compared with that of Ethereum. However, prominent figure heads within the industry still continue to believe that the $4 billion ICO still will require a review by the US SEC which may result in problems for EOS moving forward.
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