EOS price started a fresh decline from well above the $3.500 resistance against the US Dollar.
The price declined below the $3.200 support and settled below the 55 simple moving average (4-hours).
There is a crucial bearish trend line forming with resistance near $3.200 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
The pair could continue to move down below $3.000 as long as it is below $3.200.
EOS price is declining and trading below key supports against the US Dollar, similar to bitcoin. The price is currently consolidating losses and remains at a risk of more losses.
EOS Price Analysis
EOS price failed to stay above the $3.550 and $3.500 support levels against the US Dollar. It traded below the $3.400 and $3.200 support levels to move into a bearish zone.
There was also a break below the $3.000 support and the price settled well below the 55 simple moving average (4-hours). It traded as low as $2.961 and it is currently consolidating losses. There was a minor upside correction above the $3.000 level.
EOS recovered above the 23.6% Fib retracement level of the recent decline from the $3.435 high to $2.961 low. However, the price is facing a lot of hurdles on the upside, starting with $3.200.
There is also a crucial bearish trend line forming with resistance near $3.200 on the 4-hours chart of the EOS/USD pair. The trend line is close to the 50% Fib retracement level of the recent decline from the $3.435 high to $2.961 low.
Therefore, an upside break above the trend line resistance is must to start a steady recovery. The next major resistance is near the 55 simple moving average (4-hours) at $3.350. A successful close above the 55 simple moving average (4-hours) could open the doors for a decent increase towards the $3.550 level.
Conversely, the price might continue to move down towards the $2.900 support. A clear break below the $2.900 support may perhaps spark a sustained downward move towards the $2.600 and $2.500 levels.
Looking at the chart, EOS price is clearly facing a few key hurdles near the $3.200 level. Therefore, the price could continue to move down below $3.000 as long as it is below $3.200.
4-hours MACD – The MACD for EOS/USD is still moving in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now well below the 50 level.
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