HomeAltcoin NewsEOS Price Analysis: Sell On Rallies Towards $3.250

EOS Price Analysis: Sell On Rallies Towards $3.250

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  • EOS price is back in a bearish zone below the $3.300 support area against the US Dollar.
  • The price is currently trading above the $3.000 support area and struggling to correct higher.
  • There is a key contracting triangle forming with resistance near $3.100 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
  • The pair remains at a risk of more downsides below the $3.000 support area.

EOS price is facing an increase in selling against the US Dollar, similar to bitcoin. The price is likely to break the $3.000 support area and continue lower.

EOS Price Analysis

This week, bitcoin, Ethereum, ripple, litecoin and EOS declined steadily against the US Dollar. Earlier, EOS price struggled to climb the $3.450 and $3.500 resistance levels.

As a result, the price started a fresh decline and broke the key $3.300 and $3.280 support levels. It opened the doors for more losses below the $3.200 support area and the 55 simple moving average (4-hours).

Finally, the price broke the $3.050 support area and tested the $3.000 area. A low was formed near $3.006 and the price is currently consolidating losses. An immediate resistance is near the $3.100 level.

Besides, the 23.6% Fib retracement level of the recent decline from the $3.435 high to $3.006 low is also near the $3.100 level. More importantly, there is a key contracting triangle forming with resistance near $3.100 on the 4-hours chart of the EOS/USD pair.

Thus, if there is an upside break above the $3.100 and $3.150 resistance levels, EOS price could test the $3.220 resistance zone. It coincides with the 50% Fib retracement level of the recent decline from the $3.435 high to $3.006 low.

The main resistance is near the $3.280 level and a bearish trend line on the same chart. If there is a successful break above the $3.300 area and the 55 simple moving average (4-hours), the price could start a nice upward move.

Conversely, the price could fail to climb above $3.150 or $3.220. In the mentioned case, the price could break the $3.000 support area and continue lower. The next major support is near $2.820, followed by the $2.750 level.

EOS Price

Looking at the chart, EOS price is trading in a downtrend below the $3.200 and $3.280 resistance levels. In the short term, there could be an upside correction, but upsides are likely to remain capped below $3.300. The bears may perhaps eye a breakdown below $3.000 in the near term.

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 well below the 40 level.

Major Support Levels – $3.000 and $2.850.

Major Resistance Levels – $3.200 and $3.300.

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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