The EOS (EOS) rally was shortened when the price ran into some pushback. Between 12-15th October, the early $5.3000 region had prevented the bulls from passing through. Until the price was knocked back down to $5.1800, to then see a large rally, through the previously mentioned resistance.
As a result, EOS/USD has launched into the $6.0000 territory, retesting a major broken ascending trend line. The $5.0000 support-level is key and could open a floodgate of selling pressure for EOS/USD. The last time this level was firmly breached, was on 17th September.
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If the EOS/USD pair breaks down of $5, it can drop to the next support at $4.49, and below that to $3.8723. Therefore, traders can keep the stops on their long positions at $4.9. If the bulls push the price above the moving averages, a rally to $6.1, followed by a move to the top of the range at $6.8299 is likely. The trend will reverse if the price sustains above the top of the range.
In a series of adjacent news, a blockchain testing company, Ensys, ran some tests on EOS and the results were curious. Namely, EOS registered as not a blockchain company but more of a centralized-cloud computing zone. Whiteblock was the company that ran the tests by building a replica model of EOS.
“EOS is not a blockchain, rather a distributed homogeneous database management system, a clear distinction in that their transactions are not cryptographically validated,” Whiteblock argues. “EOS block producers are highly centralized and users can only access the network using block producers as intermediaries. Block producers are a single point of failure for the entire system.”
Whiteblock’s testing revealed that the amount of transactions able to be processed by EOS is much lower than initially claimed in marketing materials, never exceeding 250 transactions per second (TPS), even with optimal settings like zero latency and packet loss.