- EOS failed to clear the $3.600 resistance and started a fresh decline against the US Dollar.
- The price declined below the key $3.200 support and the 55 simple moving average (4-hours).
- There was a break below a major ascending channel with support near $3.300 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could extend its decline if the bears are able to clear the main $3.000 support zone.
EOS price is gaining bearish momentum below $3.200 against the US Dollar, similar to bitcoin. The price is currently testing a significant support at $3.000, below which it could slide sharply.
EOS Price Analysis
EOS price failed again to clear the $3.550 and $3.600 resistance levels against the US Dollar. As a result, there was a sharp decline below the $3.400 support level from the $3.561 swing high.
During the decline, there was a break below a major ascending channel with support near $3.300 on the 4-hours chart of the EOS/USD pair. The pair even declined below the key $3.200 support and the 55 simple moving average (4-hours).
It opened the doors for more losses and the price even spiked below the $3.000 support. A low is formed near $2.897 and the price is currently consolidating above the $3.000 support.
It recovered above the $3.050 level, plus the 23.6% Fib retracement level of the recent drop from the $3.561 high to $2.897 low. However, it is facing hurdles near the $3.100 level. An initial resistance is near the $3.150 level and the 55 simple moving average (4-hours).
The main resistance is now near the $3.200 level (the breakdown zone). It is close to the 50% Fib retracement level of the recent drop from the $3.561 high to $2.897 low.
Therefore, an upside break above the 55 simple moving average (4-hours) and the $3.200 level is must to start a fresh upward move in the near term. Conversely, the price might continue to move down below the $3.000 support.
The next key support is near the $2.900 level, below which the price may perhaps start a sustained downward move towards the $2.650 and $2.500 levels.
Looking at the chart, EOS price is clearly trading near a major support zone at $3.000. Therefore, the price could extend its decline if the bears are able to clear the main $3.000 support zone.
Technical indicators
4-hours MACD – The MACD for EOS/USD is now gaining pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is now well below the 40 level.
Major Support Levels – $3.000 and $2.900.
Major Resistance Levels – $3.150 and $3.200.
