- EOS price started a downside correction after trading to a new yearly high at $4.073 against the US Dollar.
- The price is declining and it recently broke the $3.800 support area.
- There was a break below a key bullish trend line with support near $3.600 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair remains at a risk of additional losses below $3.550 and $3.500 in the near term.
EOS price is correcting lower from the recent high against the US Dollar, just like bitcoin. It could continue to slide towards $3.225 unless the bulls protect the $3.500 support.
EOS Price Analysis
This week, there was a downside correction in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. Earlier, EOS price climbed above the $3.500 and $3.800 resistance levels.
It even broke the $4.000 resistance area and settled above the 55 simple moving average (4-hours). Finally, the price traded as high as $4.073 and recently started a downside correction.
It broke the $4.000 and $3.800 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the $2.647 low to $4.073 high. The decline was such that the price even broke the $3.600 support level.
Besides, there was a break below a key bullish trend line with support near $3.600 on the 4-hours chart of the EOS/USD pair. It is now trading near the $3.500 support level and below the 55 simple moving average (4-hours).
If there is a break below the $3.500 support, the price could slide towards the $3.350 support area. It represents the 50% Fib retracement level of the upward move from the $2.647 low to $4.073 high.
Any further losses may perhaps lead the price towards the $3.225 support area. If the bears push the price below the $3.225 support, there is a risk of a collapse towards the 76.4% Fib retracement level of the upward move from the $2.647 low to $4.073 high.
On the upside, an initial resistance is near the $3.700 area and the 55 SMA. If the bulls push the price above the $3.700 area, the price could start a strong rise towards the $4.000 area.
Looking at the chart, EOS price is currently declining and it may soon break the $3.500 support. However, the bulls are likely to emerge near the $3.225 support area.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is now well below the 50 level.
Major Support Levels – $3.500 and $3.225.
Major Resistance Levels – $3.700 and $4.000.
