- EOS price started a major decline from the $4.429 swing high against the US Dollar.
- The price broke many key supports near the $4.000 and $3.800 levels.
- There is a key bearish trend line forming with resistance near $3.880 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair could correct higher, but the bears are likely to remain active near $3.800.
EOS price is down more than 10% and it broke the key $3.800 support against the US Dollar, similar to bitcoin. It seems like the bears are back in action and the price could extend its decline.
EOS Price Analysis
This past, EOS failed to climb above the $4.500 resistance area against the US Dollar. As a result, there was a sharp bearish reaction below the $4.000 support level and the 55 simple moving average (4-hours).
It opened the doors for more losses and the price broke the key $3.800 support level. Finally, the price spiked below the $3.500 level and a new weekly low is formed near the $3.316 level.
The price is currently correcting higher and trading above the $3.500 level. It is testing the 23.6% Fib retracement level of the downward move from the $4.429 high to $3.316 low. On the upside, an initial resistance is seen near the $3.650 level.
The first key resistance is near the $3.800 level (the previous breakdown support). Besides, the 50% Fib retracement level of the downward move from the $4.429 high to $3.316 low is near the $3.880 level.
More importantly, there is a key bearish trend line forming with resistance near $3.880 on the 4-hours chart of the EOS/USD pair. Therefore, the price must climb above the $3.800 and $4.000 resistance levels to start a fresh increase in the near term.
Conversely, the price could continue to move down if it fails to clear the $3.650 and $3.800 resistance levels. In the mentioned case, the price might find support near the $3.300 and $3.200 levels. Any further losses could lead the price towards the $3.000 support area.
Looking at the chart, EOS price is currently correcting higher towards the $3.650 resistance level. The overall price action is bearish and any upsides could be seen as an opportunity to sell unless there is a clear break above $4.000.
4-hours MACD – The MACD for EOS/USD is slowly moving back into the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently recovering towards the 30 level.
Major Support Levels – $3.300 and $3.200.
Major Resistance Levels – $3.650 and $3.800.
The post EOS Price Analysis: Bears Are Back In Control, Sell Rallies? appeared first on Live Bitcoin News.
Source: Live Bitcoin News