- EOS traded to a new monthly low at $2.241 before correcting higher against the US Dollar.
- The price is currently trading above $2.350, but it is well below the 55 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $2.420 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could start a strong rally if it clears the $2.420 and $2.500 resistance levels in the near term.
EOS price is showing a few positive signs above $2.350 against the US Dollar, while bitcoin surged past $14k. The price could start a fresh rally if it settles above $2.420.
EOS Price Analysis
In the past few days, EOS price followed a bearish path from well above $2.500 against the US Dollar. The price broke the $2.420 support level and settled well below the 55 simple moving average (4-hours).
The decline gained pace below the $2.350 support and the price traded to a new monthly low at $2.241. Recently, it started a recovery wave, following a strong rally in bitcoin and ETH. EOS broke the $2.300 and $2.350 resistance levels.
It even recovered above the 23.6% Fib retracement level of the downward move from the $2.756 high to $2.241 low. However, the bulls are now facing a strong resistance near the $2.420 level (the last breakdown zone).
There is also a crucial bearish trend line forming with resistance near $2.420 on the 4-hours chart of the EOS/USD pair. If there is an upside break above the trend line, the price could test the $2.50 resistance or the 55 simple moving average (4-hours).
The 50% Fib retracement level of the downward move from the $2.756 high to $2.241 low is also near the $2.500 level to act as a strong resistance. If there is a clear break above the $2.500 resistance and the 55 simple moving average (4-hours), the price could start a strong rally.
In the stated case, the price might climb towards the $2.650 and $2.700 resistance levels. Conversely, the price could resume its decline below the $2.350 support. The next major support is near the $2.250 zone.
Looking at the chart, EOS price is clearly facing a major barrier near $2.420 and the 55 simple moving average (4-hours). Overall, the price could start a strong rally if it clears the $2.420 and $2.500 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 about to break the 50 level.
Major Support Levels – $2.235 and $2.250.
Major Resistance Levels – $2.242 and $2.500.
