HomeAltcoin NewsEOS Price Analysis: Downside Thrust Before Fresh Increase?

EOS Price Analysis: Downside Thrust Before Fresh Increase?

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  • EOS price is trading below the key $4.700 and $4.600 resistance levels against the US Dollar.
  • The price is struggling to hold the main $4.050 support area.
  • There is a major bullish trend line forming with support near $4.080 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
  • The pair could decline heavily below the $4.080 and $4.0450 supports before staring a fresh increase.

EOS price is trading with a bearish angle against the US Dollar and bitcoin. The price could decline heavily if it fails to stay above the $4.050 and $4.000 support levels.

EOS Price Analysis

Earlier this week, there was a bearish reaction in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. Later, BTC recovered, but EOS price struggled to surpass the $4.600 resistance. Moreover, there was no proper close above the $4.500 pivot level. As a result, the price declined below the $4.400 support level. The price even broke the $4.300 level and settled below the 55 simple moving average (4-hours).

Finally, the price broke the $4.100 level, but it managed to stay above the $4.050 and $4.000 support levels. A swing low was formed near $4.043 and the price is currently consolidating with corrective moves. It traded above the $4.200 resistance level. Additionally, there was a break above the 23.6% Fib retracement level of the recent decline from the $4.585 high to $4.043 low.

However, the price is facing a strong resistance near the $4.300 level and the 55 simple moving average (4-hours). More importantly, the 50% Fib retracement level of the recent decline from the $4.585 high to $4.043 low is also near the $4.310 level. Therefore, a break above the $4.300 resistance area might push the price towards the key $4.500 and $4.600 resistance levels.

On the downside, the main supports are near the $4.050 and $4.000 levels. Furthermore, there is a major bullish trend line forming with support near $4.080 on the 4-hours chart of the EOS/USD pair. If there is a downside break below the $4.000 support, the price could extend its decline. The next support is near the $3.800 level, below which there is a risk of a drop towards the $3.500 level.

EOS Price Analysis Chart

Looking at the chart, EOS price is under a lot of pressure below the $4.500 and $4.600 resistance levels. Having said that, the price needs to surpass the $4.720 resistance level to continue higher towards $5.000.

Technical indicators

Hourly MACD – The MACD for EOS/USD is gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI is currently declining and moving away from the 50 level.

Major Support Levels – $4.050 and $4.000.

Major Resistance Levels – $4.500 and $4.600.

Aayush Jindal
Aayush Jindal
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

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