- EOS price started a downside correction from the $2.726 high against the US Dollar.
- The price is now trading well below the $2.600 level and the 55 simple moving average (4-hours).
- There is a crucial declining channel forming with resistance near $2.580 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could start a fresh increase above $2.600 as long as it is above the $2.450 support zone.
EOS price is following a declining pattern below $2.600 against the US Dollar, similar to bitcoin. The bulls are likely to aim a fresh bullish break above $2.600 unless the price dives below $2.450.
EOS Price Analysis
EOS price started a steady decline after it failed to surpass $2.750 and $2.800 against the US Dollar. The price formed a high near $2.726 and declined below the $2.600 support zone.
The price broke the 50% Fib retracement level of the upward move from the $2.330 swing low to $2.726 high. It even settled below the $2.600 level and the 55 simple moving average (4-hours). Finally, there were a couple of spikes below the $2.480 support level.
The decline was protected near $2.450 and the price remained well bid close to the 61.8% Fib retracement level of the upward move from the $2.330 swing low to $2.726 high.
It seems like there is a crucial declining channel forming with resistance near $2.580 on the 4-hours chart of the EOS/USD pair. The channel resistance at $2.580 is near the 55 simple moving average (4-hours).
To move into a positive zone, the price needs to clear the $2.580 and $2.600 resistance levels. If the bulls succeed, the price could revisit the $2.750 resistance zone. Any further gains may perhaps open the doors for a larger wave towards the $3.000 level.
Conversely, the price might continue to move down below $2.480 and $2.450. A successful break and close below the $2.450 support zone may probably spark a nasty decline. In the mentioned case, the price is likely to decline towards the $2.300 support.
Looking at the chart, EOS price is clearly following a declining pattern and holding the main $2.450 support. It could start a fresh increase above $2.600 as long as it is above the $2.450 support zone.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly moving in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently correcting towards the 50 level.
Major Support Levels – $2.450 and $2.300.
Major Resistance Levels – $2.600 and $2.750.
