- EOS price failed to stay above $5.000 and declined heavily below $4.400 against the US Dollar.
- The price even dipped below the $4.000 support area and tested the $3.650 level.
- There was a break below an ascending channel or a bearish flag with support near $4.400 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could struggle to recover above $4.200 and $4.400 in the near term.
EOS price is showing signs of more weakness below $4.000 against the US Dollar, similar to bitcoin. If there is a clear close below $3.800, the price could retest $3.200.
EOS Price Analysis
After a couple of failed attempts near the $5.500 area, EOS started a steady decline against the US Dollar. The bulls failed to protect the $5.000 support area and the 55 simple moving average (4-hours).
As a result, there was a sharp decline below the $4.400 and $4.200 support levels. The price even dipped below the $4.000 support area before it found support near the $3.650 level.
Moreover, there was a break below an ascending channel or a bearish flag with support near $4.400 on the 4-hours chart of the EOS/USD pair. A swing low is formed near $3.649 and the price is currently correcting higher.
There was a break above the 23.6% Fib retracement level of the recent decline from the $4.665 high to $3.649 low. However, there are many hurdles on the upside near the $4.070 and $4.150 levels.
The first key resistance is near the $4.150 and the 50% Fib retracement level of the recent decline from the $4.665 high to $3.649 low. Still, EOS price must move above the $4.200 pivot area to start a decent recovery.
The next major hurdle is near the $4.400 area, above which the bulls are likely to aim a test of the $5.000 resistance area. Conversely, there is a risk of more losses in the coming sessions below $4.000.
An initial support is near the $3.800 level, followed by the $3.650 support. If the price fails to stay above $3.650, there could be a sharp decline towards the $3.200 level.
Looking at the chart, EOS price is currently correcting higher towards $4.200. If it fails to gain strength above $4.200 and $4.400, there are chances of a downside extension below $3.650.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly moving back into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently near the 30 level.
Major Support Levels – $3.800 and $3.650.
Major Resistance Levels – $4.200 and $4.400.
