- EOS rallied towards the $3.900 level before correcting lower against the US Dollar.
- The price is currently trading below the $3.300 support and testing the 55 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $3.120 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could retest the $3.000 support zone before a fresh increase in the near term.
EOS price started a sharp decline after it failed to test $4.000 against the US Dollar, similar to bitcoin at $19.5K. The price must stay above $2.850 support to start a fresh rally.
EOS Price Analysis
In the past few days, EOS price saw a sharp increase above the $3.000 resistance zone against the US Dollar. The price broke the $3.300 resistance level and settled well above the 55 simple moving average (4-hours).
The price even climbed above the $3.500 level, but it struggled to continue higher above $3.900. A high was formed near $3.889 before the price started a downside correction. There was a sharp bearish reaction below the $3.500 and $3.500 levels.
The price even spiked below $3.200 level and the 55 simple moving average (4-hours). There was also a break below the 50% Fib retracement level of the upward move from the $2.445 low to $3.889 high.
However, the bulls protected the $3.000 support level and the price is now trading near the 55 simple moving average (4-hours). There is also a major bullish trend line forming with support near $3.120 on the 4-hours chart of the EOS/USD pair.
If there is a downside break below the trend line support, the price could test the $3.000 support. The next major support sits near the $2.850 level, below which there is a risk of a sharp decline in the coming sessions.
Conversely, the price might start a fresh increase from the trend line support of $3.000. On the upside, an initial resistance is near the $3.250 level. The main hurdle is at $3.300, above which the price could start a strong increase towards $3.500 and $3.600.
Looking at the chart, EOS price is clearly holding the key $3.000 support and the 55 simple moving average (4-hours). Overall, the price could retest the $3.000 support zone before a fresh increase in the near term.
Technical indicators
4-hours MACD – The MACD for EOS/USD is gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is now below the 50 level.
Major Support Levels – $3.000 and $2.850.
Major Resistance Levels – $3.300 and $3.500.