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- EOS price is trading below the key $4.700 and $4.600 resistance levels against the US Dollar.
- The price is struggling to hold the main $4.050 support area.
- There is a major bullish trend line forming with support near $4.080 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could decline heavily below the $4.080 and $4.0450 supports before staring a fresh increase.
EOS price is trading with a bearish angle against the US Dollar and bitcoin. The price could decline heavily if it fails to stay above the $4.050 and $4.000 support levels.
EOS Price Analysis
Earlier this week, there was a bearish reaction in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. Later, BTC recovered, but EOS price struggled to surpass the $4.600 resistance. Moreover, there was no proper close above the $4.500 pivot level. As a result, the price declined below the $4.400 support level. The price even broke the $4.300 level and settled below the 55 simple moving average (4-hours).
Finally, the price broke the $4.100 level, but it managed to stay above the $4.050 and $4.000 support levels. A swing low was formed near $4.043 and the price is currently consolidating with corrective moves. It traded above the $4.200 resistance level. Additionally, there was a break above the 23.6% Fib retracement level of the recent decline from the $4.585 high to $4.043 low.
However, the price is facing a strong resistance near the $4.300 level and the 55 simple moving average (4-hours). More importantly, the 50% Fib retracement level of the recent decline from the $4.585 high to $4.043 low is also near the $4.310 level. Therefore, a break above the $4.300 resistance area might push the price towards the key $4.500 and $4.600 resistance levels.
On the downside, the main supports are near the $4.050 and $4.000 levels. Furthermore, there is a major bullish trend line forming with support near $4.080 on the 4-hours chart of the EOS/USD pair. If there is a downside break below the $4.000 support, the price could extend its decline. The next support is near the $3.800 level, below which there is a risk of a drop towards the $3.500 level.
Looking at the chart, EOS price is under a lot of pressure below the $4.500 and $4.600 resistance levels. Having said that, the price needs to surpass the $4.720 resistance level to continue higher towards $5.000.
Technical indicators
Hourly MACD – The MACD for EOS/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently declining and moving away from the 50 level.
Major Support Levels – $4.050 and $4.000.
Major Resistance Levels – $4.500 and $4.600.