- EOS price fell significantly and broke the $5.500 and $4.400 support levels against the US Dollar.
- The price traded close to the $3.300 level and it is currently correcting losses.
- There is a key bearish trend line forming with resistance near $4.020 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could correct higher above $4.000, but it is likely to face a strong resistance near $4.400.
EOS price declined heavily in the past few days against the US Dollar and bitcoin. The price is clearly trading in a bearish zone, but a short term recovery above $4.000 is very likely.
EOS Price Analysis
In the past few days, there were heavy downsides in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. EOS price broke the key $5.500 support level to enter a bearish zone. Later, it even broke the $5.000 support level and settled below the 55 simple moving average (4-hours). Moreover, the price broke another important support near $4.400. Finally, there was a break below $4.00 and the price traded to a new monthly low.
A swing low was formed at $3.321 and the price is currently correcting higher. It traded above the $3.500 and $3.600 resistance levels. However, the 23.6% Fib retracement level of the downward move from the $6.075 high to $3.321 low acted as a resistance. Moreover, there is a key bearish trend line forming with resistance near $4.020 on the 4-hours chart of the EOS/USD pair.
If there is an upside break above the trend line, the price might recover towards the $4.400 resistance area. The next important resistance is near the $4.700 level. The 50% Fib retracement level of the downward move from the $6.075 high to $3.321 low is near the $4.700 level to act as a strong resistance. Besides, the 55 simple moving average (4-hours) is also near the $4.680 level to stop upsides.
Therefore, the price might face a strong resistance near the $4.400 and $4.700 levels. If there is a close above $4.700 and the 55 simple moving average (4-hours), the price might move back into a positive zone.
Looking at the chart, EOS price might decline again after completing the current correction near the $4.400 or $4.700 level. On the downside, an immediate support is near the $3.650 level, below which it could move back towards the $3.400 level.
Hourly MACD – The MACD for EOS/USD is recovering in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well just above the 40 level, with a minor bullish angle.
Major Support Levels – $3.400 and $3.200.
Major Resistance Levels – $4.400 and $4.700.