- EOS rallied failed to gain momentum above $3.300 and corrected lower against the US Dollar.
- The price is currently holding the $2.950 support, but below the 55 simple moving average (4-hours).
- There is a major contracting triangle forming with resistance near $3.120 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could either rally above $3.200 or start a sharp decline below $2.950.
EOS price is approaching a major break against the US Dollar, similar to bitcoin. The price must stay above $2.950 support to start a fresh rally.
EOS Price Analysis
In the past few days, EOS price failed to gain pace above the $3.300 resistance zone against the US Dollar. The price corrected lower and traded below the $3.150 support level.
There was also a break below the $3.000 support and the price settled below the 55 simple moving average (4-hours). A swing low is formed near $2.940 and the price is currently setting up for the next major break.
There was a break above the $3.000 level, and the price recovered above the 23.6% Fib retracement level of the downward move from the $3.354 high to $2.940 low. However, the price is facing a strong resistance near the $3.120 and $3.150 levels.
There is also a major contracting triangle forming with resistance near $3.120 on the 4-hours chart of the EOS/USD pair. The triangle resistance is close to the 55 simple moving average (4-hours).
The 50% Fib retracement level of the downward move from the $3.354 high to $2.940 low is also at $3.147. Therefore, a successful close above the $3.150 resistance could open the doors for a strong increase. The next key resistance is at $3.200, above which the price may even break the $3.300 resistance.
Conversely, the price might break the triangle support zone at $2.950. The next immediate support is at $2.750, below which the price could decline towards the $2.500 level.
Looking at the chart, EOS price is clearly approaching the next crucial break, with a key hurdle at $3.150 and the 55 simple moving average (4-hours). Overall, the price could either rally above $3.200 or start a sharp decline below $2.950 the near term.
Technical indicators
4-hours MACD – The MACD for EOS/USD is struggling to gain momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is now just below the 50 level.
Major Support Levels – $2.950 and $2.750.
Major Resistance Levels – $3.150 and $3.200.
