- EOS rallied sharply above the $2.500 and $2.800 resistance levels against the US Dollar.
- The price traded as high as $.979 before correcting lower sharply towards the 55 simple moving average (4-hours).
- There is a short-term declining channel forming with resistance near $2.670 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could either restart its rise above $2.700 or decline further towards the $2.500 support.
EOS price is trimming gains from the $3.000 resistance zone against the US Dollar, similar to bitcoin. The price could continue to move down if it fails to stay above $2.600
EOS Price Analysis
Recently, EOS price started a strong upward move above the $2.500 and $2.800 resistance levels against the US Dollar. The price even broke the $2.900 resistance and settled well above the 55 simple moving average (4-hours).
It traded close to the $3.000 resistance before starting a sharp decline. A high was formed near $2.979 and the price declined heavily below the $2.800 level. There was a break below the 50% Fib retracement level of the recent rally from the $2.491 low to $2.979 high.
The price is now trading near the $2.600 support level. It seems like the 76.4% Fib retracement level of the recent rally from the $2.491 low to $2.979 high is acting as a support.
More importantly, there is a short-term declining channel forming with resistance near $2.670 on the 4-hours chart of the EOS/USD pair. If there is an upside break above the channel resistance and $2.700, the price could start a fresh increase.
The next major resistance is near the $2.800 level, above which it could rally towards the $3.000 resistance zone in the coming sessions. Conversely, the price could fail to clear the $2.700 resistance.
An initial support on the downside is near the channel trend line and $2.600. A downside break below the $2.600 support could lead the price further lower towards the 55 simple moving average (4-hours) at $2.550. The next key support is near the $2.500 level, below which the price may perhaps revisit the $2.420 support.
Looking at the chart, EOS price is clearly under pressure below the $2.700 level, but it is above the 55 simple moving average (4-hours). Overall, the price could either restart its rise above $2.700 or decline further towards the $2.500 support.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly losing pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is still above the 50 level.
Major Support Levels – $2.600 and $2.500.
Major Resistance Levels – $2.700 and $2.800.