- EOS started a downside correction after it failed to clear the $2.720 level against the US Dollar.
- The price is currently facing hurdles near $2.650 and the 55 simple moving average (4-hours).
- There is a major declining channel forming with resistance near $2.650 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could either restart its upward move above $2.650 or decline further towards the $2.500 support.
EOS price is struggling to gain pace above $2.700 against the US Dollar, similar to bitcoin. The price could start a fresh increase if it clears the $2.650 resistance zone.
EOS Price Analysis
This past week, EOS price climbed above the $2.650 resistance against the US Dollar. The price even settled well above the 55 simple moving average (4-hours), but it struggled to clear the $2.720 level.
A high was formed near $2.722 and the price is currently declining. There was a break below the $2.650 support level and the 55 simple moving average (4-hours). Moreover, there was a break below the 50% Fib retracement level of the upward move from the $2.491 low to $2.722 high.
It is now finding bids near the $2.580 level. The stated support is close to the 61.8% Fib retracement level of the upward move from the $2.491 low to $2.722 high.
On the upside, the price is facing hurdles near $2.650 and the 55 simple moving average (4-hours). There is also a major declining channel forming with resistance near $2.650 on the 4-hours chart of the EOS/USD pair. A clear break above the $2.650 resistance level might increase the chances of more gains.
The next major resistance is near the $2.720 level, above which the price might rise sharply towards $2.800. Any further gains could open the doors for a push towards the $2.880 and $2.900 levels.
Conversely, the price could fail to clear the $2.650 resistance. An initial support on the downside is near the channel trend line and $2.580. A downside break below the $2.580 support could lead the price further lower towards the $2.550 level.
Looking at the chart, EOS price is clearly approaching a major breakout with hurdles near $2.650. Overall, the price could either restart its upward move above $2.650 or decline further towards the $2.500 support.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly losing momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is well below the 50 level.
Major Support Levels – $2.580 and $2.550.
Major Resistance Levels – $2.650 and $2.720.
