- EOS traded to a weekly high at $2.755 before starting a downside correction against the US Dollar.
- The price is currently trading above $2.620 and the 55 simple moving average (4-hours).
- There is a crucial contracting triangle forming with resistance near $2.688 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could resume its rise if it clears the $2.700 and $2.720 resistance levels in the near term.
EOS price is holding important supports above $2.600 against the US Dollar, similar to bitcoin. The price could start a fresh increase as long as it is above $2.600.
EOS Price Analysis
This week, EOS price traded in a nice uptrend above the $2.600 and $2.620 levels against the US Dollar. The price even broke the $2.700 level and settled well above the 55 simple moving average (4-hours).
It traded to a weekly high at $2.755 before starting a downside correction. There was a break below the $2.650 support level, but the bulls were able to defend the $2.600 support zone. The recent low was formed near $2.623 and the price is currently holding gains.
It is now trading above $2.620 and the 55 simple moving average (4-hours). There was a break above the 23.6% Fib retracement level of the recent decline from the $2.755 high to $2.623 low.
Moreover, it seems like there is a crucial contracting triangle forming with resistance near $2.688 on the 4-hours chart of the EOS/USD pair. The triangle resistance is close to the 50% Fib retracement level of the recent decline from the $2.755 high to $2.623 low.
If there is a clear break above the triangle resistance, the price could even climb above the $2.700 resistance. The next key resistance is near the $2.720 level, above which there are high chances of a break above the $2.750 level.
On the downside, an initial support is near the triangle lower trend line at $2.640 and the 55 simple moving average (4-hours). The next major support is near the $2.600 zone. A clear break below the $2.600 support zone could increase selling pressure and the price might move into a bearish zone.
Looking at the chart, EOS price is clearly trading in a nice uptrend above $2.620 and the 55 simple moving average (4-hours). Overall, the price could resume its rise if it clears the $2.700 and $2.720 resistance levels in the near term.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is still above the 50 level.
Major Support Levels – $2.640 and $2.600.
Major Resistance Levels – $2.700 and $2.720.
