Another layer 1 Blockchain gets boost from upcoming Upgrade

Submitted by Joey Wagner on Wednesday, August 24, 2022 - 02:17.

Ethereum’s switch to PoS (proof-of-stake) has been the main focus of cryptocurrency traders, miners, and the overall community for the past month. The Merge is set to be the biggest, most monumental, and highly anticipated event that has and will continue to drastically shape market sentiment in the coming month. However, it is not alone in terms of hype for a September upgrade.

The token of the EOS Network Foundation (ENF) soared after ENF announced last week that Antelope will be used as the underlying protocol for EOSIO-based blockchains. Antelope, a community-run blockchain protocol, will be supported by members of the ENF, which include EOS, Telos, Wax, and UX Network.

EOS is a layer one 3rd generation crypto that was born out of a 2018 ICO, according to Coinmarketcap.com “The EOS Network is a 3rd generation Layer 1 blockchain that is low-latency and highly performant blockchain that liberates developers…bringing together programmable architectures, versatile blockchain infrastructures, and custom smart contracts.”

EOS has gained over 30% in value over the last 7 days fueled by the optimism for the hard-fork set to occur on September 21st. However, on a technical basis EOS seems to have peaked and is destined for a further retracement in the short term. I am basing this on the fact that on an hourly-time frame the market has hit resistance at the intra-day 61.8% Fibonacci retracement level.

The retracement I am using starts at $1.70 where there is tentative support, up to the recent high hit on August 22nd at $1.96. Below $1.70 support resides at $1.68 which happens to be the intra-day 38% retracement as well as very close to the price hit on August 17th the day the Antelope upgrade was announced. This may be a good entry point to get in from the long side because although the short-term outlook is bearish mid-term (the next month) could prove to be very bullish. If we do not see a bounce from $1.68 the next level of support is a triple top where the tops were created as far back as May and reside at $1.46. The upside potential should EOS continue to rise could easily be as high as $2.67.