- EOS price is trading above a couple of key supports near $2.700 against the US Dollar.
- The price is likely to start a strong increase if it clears the 55 simple moving average (4-hours) and $2.800.
- There is a major contracting triangle forming with resistance near $2.775 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could decline heavily if it breaks the main $2.650 support zone in the near term.
EOS price is showing positive signs above $2.650 against the US Dollar, similar to bitcoin. However, the price must break the $2.800 level to start a fresh increase.
EOS Price Analysis
EOS price started a fresh decline after it failed to test the $3.000 resistance against the US Dollar. The price traded as high as $2.868 before it started declining. It broke the $2.750 support level and the 55 simple moving average (4-hours).
A low is formed near $2.679 before the price started an upside correction. It broke the 23.6% Fib retracement level of the recent decline from the $2.868 high to $2.679 low.
However, the price seems to be facing hurdles near the 55 simple moving average (4-hours) and the $2.780 level. There is also a major contracting triangle forming with resistance near $2.775 on the 4-hours chart of the EOS/USD pair.
The triangle resistance is close to the 50% Fib retracement level of the recent decline from the $2.868 high to $2.679 low. Therefore, an upside break above the triangle resistance and $2.800 is needed for a sustained upward move.
The next major resistance is near the $2.880 level, above which EOS price is likely to surpass the $3.000 resistance zone in the coming sessions. Any further gains could lead the price towards the $3.200 level.
Conversely, there is a risk of a bearish break below the $2.700 and $2.650 support levels. If there is a daily close below the $2.650 support, there is a risk of a sharp decline towards $2.500 level in the near term.
Looking at the chart, EOS price is clearly preparing for the next major bullish break if there is a clear wave above the $2.800 level. If not, the price could start a substantial decline below the $2.650 support.
Technical indicators
4-hours MACD – The MACD for EOS/USD is showing positive signs in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is just above the 50 level.
Major Support Levels – $2.700 and $2.650.
Major Resistance Levels – $2.800 and $2.880.
