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HomeAltcoin NewsEOS Price Analysis: Can $2.60 Produce A Fresh Rally?

EOS Price Analysis: Can $2.60 Produce A Fresh Rally?

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  • EOS price started a major downside correction from the $3.121 high against the US Dollar.
  • The price traded below the $3.000 and $2.800 support levels.
  • There was a break below a major bullish trend line with support near $2.850 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
  • The pair is currently holding a crucial support at $2.600, which holds the key in the near term.

EOS price is consolidating above a few important supports against the US Dollar, while bitcoin is rising. The price must stay above the $2.600 support level to start a decent rally above $2.850.

EOS Price Analysis

This past month, EOS price rallied above the $2.850 and $3.000 resistance levels against the US Dollar. The price traded as high as $3.121 before it started a substantial downside correction in the past few days.

There was a break below the $3.000 support zone. The price traded below the $2.850 support level and the 55 simple moving average (4-hours). Moreover, there was a break below a major bullish trend line with support near $2.850 on the 4-hours chart of the EOS/USD pair.

The pair traded below the 50% Fib retracement level of the main upward move from the $2.439 low to $3.121 high. Finally, there was a spike below the $2.750 level, but the price found a strong support near the $2.600 zone.

It seems like the previous breakout zone at $2.600 is acting as a strong support. The 76.4% Fib retracement level of the main upward move from the $2.439 low to $3.121 high is also providing support.

The price is currently correcting higher and trading above $2.700. On the upside, there is a major resistance forming near the $2.850 level and the 55 simple moving average (4-hours).

There is also a connecting bearish trend line with resistance near $2.850 on the same chart. Therefore, the price must climb above the $2.850 resistance to start a fresh rally in the near term. Conversely, it could fail to break the $2.850 resistance and continue lower.

EOS Price
EOS Price

Looking at the chart, EOS price is clearly trading above a major support area at $2.600. Having said that, the bulls need to gain strength above $2.850 to start a fresh rally. If not, the price might decline towards 2.350.

Technical indicators

4-hours MACD – The MACD for EOS/USD is losing momentum in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is now recovering towards the $45-50 zone.

Major Support Levels – $2.600 and $2.350.

Major Resistance Levels – $2.850 and $3.000.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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