- EOS price started a sharp decline after it failed to stay above $3.00 against the US Dollar.
- The price broke the key $2.600 support and traded as low as $2.169
- There is a major bearish trend line forming with resistance near $2.600 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair must climb above the $2.600 resistance zone to move into a positive zone.
EOS price is currently correcting higher above $2.400 against the US Dollar, while bitcoin is rising. The price must surpass the $2.600 barrier to avoid a fresh decrease in the near term.
EOS Price Analysis
This past week, EOS price saw a sharp bearish reaction from the $2.850 resistance against the US Dollar. The price broke a few important supports near the $2.600 zone to move into a short term bearish zone.
The decline was such that the price even spiked below the $2.350 support and settled below the 55 simple moving average (4-hours). It traded to a new monthly low at $2.169 and it is currently correcting higher.
There was a break above the $2.350 and $2.400 levels. Besides, EOS climbed above the 50% Fib retracement level of the key decline from the $2.841 high to $2.169 low. It seems like the price is currently consolidating near the $2.500 and $2.550 levels.
On the upside, a crucial resistance is forming near the $2.600 level and the 55 simple moving average (4-hours). More importantly, there is a major bearish trend line forming with resistance near $2.600 on the 4-hours chart of the EOS/USD pair.
The trend line is close to the 61.8% Fib retracement level of the key decline from the $2.841 high to $2.169 low. Therefore, the bulls need to clear the $2.600 resistance zone to start a strong increase. The next major resistance is near the $2.850, above which the price could aim $3.000 and $3.200.
Conversely, there might be no upside break above $2.600 and the price could resume its decline. The main supports on the downside are near $2.350 and $2.200. Any further losses might push the $2.00 support zone at risk in the near term.
Looking at the chart, EOS price is clearly approaching a major hurdle near the $2.600 level. If there is an upside break, there could be a trend change and the price might rally to $3.000.
Technical indicators
4-hours MACD – The MACD for EOS/USD is losing momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now just above the 50 level.
Major Support Levels – $2.350 and $2.200.
Major Resistance Levels – $2.600 and $2.850.
