- EOS price failed to surpass the key $4.800 resistance level and declined recently against the US Dollar.
- The price is trading above the main $4.250 and $4.050 support levels.
- There is a crucial bullish trend line forming with support near $4.200 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could either break the $4.200 support and extend losses or climb above the $4.400 resistance.
EOS price is struggling to climb higher against the US Dollar and bitcoin. The price is currently trading near a crucial support and seems to be preparing for the next break.
EOS Price Analysis
Earlier this week, there was a fresh decline in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. EOS price failed to surpass the $4.800 resistance level on many occasions, resulting in bearish moves. There was a sharp decline below the $4.500 and $4.400 support levels. Moreover, the price broke the $4.000 support level and traded to a new weekly low at $3.795.
However, the bulls defended further losses and the price recovered nicely above $4.00. It opened the doors for more gains above the 50% Fib retracement level of the main drop from the $4.773 high to $3.795 low. Moreover, there was a break above the $4.200 level and the 55 simple moving average (4-hours). However, the price struggled to gain traction above the $4.500 level.
Additionally, the 61.8% Fib retracement level of the main drop from the $4.773 high to $3.795 low is acting as a resistance. At the outset, the price is moving lower towards the $4.250 and $4.200 support levels. There is also a crucial bullish trend line forming with support near $4.200 on the 4-hours chart of the EOS/USD pair. Therefore, if there is a downside break below the trend line, the price could accelerate losses below $4.100.
The next key support is near the $4.050 level, below which the price could break $4.000 and test the $3.800 level. On the upside, the key hurdles are near $4.400 and $4.500. A successful close above $4.500 might push the price towards the $4.800 resistance.
Looking at the chart, EOS price is clearly trading above a couple of important supports near $4.200. If it continues to struggle and breaks $4.200, there could be a fresh decline. Conversely, an upside break above the $4.500 resistance might open the doors for more gains in the coming sessions.
Technical indicators
Hourly MACD – The MACD for EOS/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently moving lower and testing the 50 level.
Major Support Levels – $4.200 and $4.050.
Major Resistance Levels – $4.500 and $4.800.
