- EOS price declined below the key $4.000 and $3.800 support levels against the US Dollar.
- The price is now trading well below $3.800 and it could continue to decline.
- There is a crucial bearish trend line forming with resistance near $3.920 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair is likely to decline below the $3.500 support level and it could revisit the $3.200 support.
EOS price is gaining bearish momentum against the US Dollar and bitcoin. The price is trading with negative angle and it seems like the bears are eyeing the $3.200 support.
EOS Price Analysis
In the past few sessions, there was a sharp decline in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. Earlier, EOS price struggled to break the $4.150 and $4.200 resistance levels. A swing high was formed near $4.121 and the price started a strong decline. It broke the key $4.000 support level to enter a bearish zone. Moreover, there was a break below the $3.800 support, with a close below the 55 simple moving average (4-hours).
Finally, the price broke the $5.650 support and traded to a new weekly low at $3.515. It is currently consolidating gains and tested the 23.6% Fib retracement level of the recent drop from the $4.121 high to $3.515 low. On the upside, there are many important resistances near the $3.700 and $3.800 levels. Moreover, the 50% Fib retracement level of the recent drop from the $4.121 high to $3.515 low is a strong resistance near $3.800.
The main resistance on the upside is near the $4.000 level (the previous support). Additionally, there is a crucial bearish trend line forming with resistance near $3.920 on the 4-hours chart of the EOS/USD pair. Therefore, the price might struggle to climb above $3.800 and $4.000 if it corrects higher from the current levels.
On the downside, an immediate support is near the $3.500 level. If there are more downsides, the next stop for the bears could be near the $3.200 support. An intermediate support is near the $3.385. If the bears remain in action, there are even chances of a drop to $3.000.
Looking at the chart, EOS price is clearly trading in a bearish zone below the $3.800 pivot level. To move back in a positive zone, the price must break the $3.800 resistance and gain strength above $4.000.
Technical indicators
Hourly MACD – The MACD for EOS/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 30 level and it is moving further lower.
Major Support Levels – $3.500 and $3.200.
Major Resistance Levels – $3.800 and $4.000.