- EOS started a strong decline from the $3.950 level and declined below $3.00 against the US Dollar.
- The price is currently trading below the $2.800 resistance and the 55 simple moving average (4-hours).
- There is a major contracting triangle forming with resistance near $2.800 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could start a strong rally if it clears the $2.800 and $2.980 resistance levels.
EOS price is forming a decent support at $2.400 against the US Dollar, while bitcoin is rising. The price could surge if it manages a clear break above the $2.800 level.
EOS Price Analysis
After trading close to the $4.000 level, EOS price started a fresh decline against the US Dollar. There was a sharp decline below the $3.500 and $3.200 support levels. The price even broke the $3.000 level and settled below the 55 simple moving average (4-hours).
Finally, there was a spike below the $2.500 level and the price traded as low as $2.373. Recently, it started a recovery wave and climbed above the $2.500 level.
There was a break above the 23.6% Fib retracement level of the downward move from the $3.940 swing high to $2.373 low. However, the price is now facing a strong resistance near the $2.800 level. There is also a major contracting triangle forming with resistance near $2.800 on the 4-hours chart of the EOS/USD pair.
If there is an upside break above the $2.800 resistance, the price could test the $3.000 resistance and the 55 simple moving average (4-hours). To move further into a positive zone, the price must settle above the $3.000 level.
The next major resistance above $3.000 is near the $3.15 level. It is close to the 50% Fib retracement level of the downward move from the $3.940 swing high to $2.373 low. Any more gains could lead the price towards the $3.500 level.
Conversely, the price could start another decline below the triangle support at $2.600. An initial support on the downside is near the $2.500 level, below which it could revisit $2.350.
Looking at the chart, EOS price is clearly facing a strong resistance near $2.800 and the 55 simple moving average (4-hours). Overall, the price could start a strong rally if it clears the $2.800 and $2.980 resistance levels.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly losing momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is still well below the 50 level.
Major Support Levels – $2.600 and $2.500.
Major Resistance Levels – $2.800 and $3.000.
