EOS failed to surpass the $5.500 zone and corrected lower against the US Dollar.
The price is currently trading well below $4.400 and the 55 simple moving average (4-hours).
There is a key contracting triangle forming with resistance near $4.000 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
The pair could either recover nicely above $4.000 or it might decline again towards $3.200.
EOS price is consolidating losses below $4.500 against the US Dollar, while bitcoin is back above $50K. The price could gain bullish momentum once it clears the $4.400 resistance zone.
EOS Price Analysis
There were a couple of attempts by EOS price to clear the $5.500 resistance against the US Dollar. However, the bulls struggled to gain strength, resulting in a bearish reaction below the $5.000 support.
There was a sharp decline below the $4.500 and $4.400 support levels. The price even broke the $4.000 support and settled well below the 55 simple moving average (4-hours). It traded as low as $3.169 and recently started an upside correction.
There was a break above the $3.500 and $3.600 resistance levels. The price even climbed above the 23.6% Fib retracement level of the downward move from the $5.474 high to $3.169 low.
It is now consolidating near the $4.000 level. There is also a key contracting triangle forming with resistance near $4.000 on the 4-hours chart of the EOS/USD pair. The next major resistance above the triangle is near the $4.350 and $4.400 levels.
The 50% Fib retracement level of the downward move from the $5.474 high to $3.169 low is also near the $4.320 level to act as a hurdle. A clear break above the $4.350 and $4.400 resistance levels will most likely set the pace for a push towards the $5.000 level. Any more gains might lead the price towards the $5.500 level.
Conversely, there could be another downside correction below the triangle support at $3.700. The next key support is near the $3.500 level. Any more losses could lead the price towards the $3.200 support zone.
Looking at the chart, EOS price is clearly trading well below $4.400 and the 55 simple moving average (4-hours). Overall, the price could either recover nicely above $4.000 or it might decline again towards $3.200.
4-hours MACD – The MACD for EOS/USD is struggling to gain in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is still below the 50 level.
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