- EOS price is currently correcting higher after it formed a support base near $2.650 against the US Dollar.
- The price is facing a lot of hurdles on the upside near the $3.050, $3.100 and $3.350 levels.
- There are two bearish trend lines forming with resistance near $3.050 and $3.400 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could correct higher towards $3.100 or $3.350, but upsides are likely to be contained.
EOS price is currently trading near key resistances against the US Dollar and bitcoin. The price must surpass the $3.400 resistance area to move into a positive zone.
EOS Price Analysis
This past week, there were additional losses in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. EOS price declined below the $2.850 and $2.650 support levels, plus settled below the 55 simple moving average (4-hours). A new monthly low was formed near $2.591 and the price recently started an upside correction. It broke the $3.850 and $3.900 resistance levels.
Moreover, there was a break above the 23.6% Fib retracement level of the last decline from the $4.085 high to $2.591 low. The price even climbed above $3.000 and the 55 simple moving average (4-hours). However, it seems to be struggling to stay above the $3.000 level. More importantly, there are two bearish trend lines forming with resistance near $3.050 and $3.400 on the 4-hours chart of the EOS/USD pair.
Above the first trend line, the next key resistance is near the $3.100 level. If there is an upside break above $3.100, the price could test the $3.350 resistance area or the next bearish trend line. An intermediate resistance is near the 50% Fib retracement level of the last decline from the $4.085 high to $2.591 low at $3.338. Therefore, an upside break above the $3.350 and $3.400 levels is must for upside continuation in the near term.
Conversely, the price could resume its decline if it fails to surpass $3.050 and $3.100. On the downside, an immediate support is near the $2.850 level. The main support is near the $2.650 level, below which the price could even trade below the $2.500 support area.
Looking at the chart, EOS price is clearly trading near a few important resistances such as $3.050 and $3.100. Having said that, a successful close above the $3.400 level is must for a trend change in the coming sessions.
Technical indicators
Hourly MACD – The MACD for EOS/USD is losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just above the 50 level, with a flat structure.
Major Support Levels – $2.850 and $2.650.
Major Resistance Levels – $3.050 and $3.100.