- EOS price is trading in a bearish zone and it broke the $3.500 and $3.350 supports against the US Dollar.
- The price is facing a lot of selling pressure and it could extend its decline towards the $3.00 level.
- There is a significant bearish trend line forming with resistance near $3.450 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair might correct higher, but it is likely to face resistance near the $3.350 and $3.400 levels.
EOS price is trading below key supports against the US Dollar and bitcoin. Therefore, there are high chances of more downsides below the $3.10 and $3.00 supports.
EOS Price Analysis
This past week, there was a minor recovery in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. However, the upward move was capped and the market resumed its decline this week. Earlier, EOS price failed to climb above the main $3.650 and $3.700 resistance levels. As a result, there was a fresh decline below the $3.500 support level. Moreover, there was a close below the $3.500 level and the 55 simple moving average (4-hours).
It opened the doors for more downsides below the $3.350 support level. Finally, the price tested the $3.100 level and a new monthly low was formed near $3.092. At the moment, the price is consolidating losses above the $3.100 level. It recovered above the $3.200 level plus the 23.6% Fib retracement level of the recent drop from the $3.555 high to $3.092 high.
However, there are many hurdles on the upside near the $3.300 and $3.350 levels. The 50% Fib retracement level of the recent drop from the $3.555 high to $3.092 high is near the $3.320 level. Moreover, the previous support near the $3.350 level is likely to act as a strong resistance. There is also a significant bearish trend line forming with resistance near $3.450 on the 4-hours chart of the EOS/USD pair.
Therefore, an upside correction towards the $3.350 and $3.450 levels is likely to face a strong selling interest in the near term. The main resistance is near the $3.500 level (the previous support). On the downside, an initial support is near the $3.100 level. If the bears remain in action, there is a risk of a downside break below the $3.000 support.
Looking at the chart, EOS price is clearly gaining bearish momentum below the key $3.350 support. Therefore, the price is likely to test $3.000 in the coming sessions.
Hourly MACD – The MACD for EOS/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently well below the 30 level, with a bearish angle.
Major Support Levels – $3.100 and $3.000.
Major Resistance Levels – $3.350 and $3.500.
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