- EOS price is back in a negative zone below the $2.500 support against the US Dollar.
- There is a cluster of supports on the downside near the $2.300 level.
- There is a major declining channel forming with resistance near $2.500 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- A clear break below the $2.300 support zone could spark more downsides in the near term.
EOS price is slowly moving back into a downtrend against the US Dollar, similar to bitcoin. However, if the price stays above the $2.300 support, it could attempt a decent recovery.
EOS Price Analysis
After multiple failures near the $2.800 resistance, EOS price started a fresh decrease against the US Dollar. The price broke a few important supports near $2.550 and $2.500 to enter a bearish zone.
Besides, there was a close below the $2.500 level and the 55 simple moving average (4-hours). The price extended its decline and tested a cluster of supports on the downside near the $2.300 level.
A new weekly low is formed near the $2.332 level and the price is currently correcting higher. It is trading near the $2.400 level and it broke the 23.6% Fib retracement level of the recent decline from the $2.596 high to $2.332 low.
On the upside, there is a key resistance forming near the $2.465 level. It coincides with the 50% Fib retracement level of the recent decline from the $2.596 high to $2.332 low. More importantly, there is a major declining channel forming with resistance near $2.500 on the 4-hours chart of the EOS/USD pair.
The 55 simple moving average (4-hours) is also near the $2.550 level to act as a hurdle for the bulls. Therefore, the price must surpass the $2.500 and $2.550 levels to start a fresh increase.
The next major resistance is near the $2.800 area, above which EOS price might test the $3.000 hurdle. On the downside, there is a major support forming near the $2.300 area.
If there is a clear break and close below the $2.300 support area, the bears are likely to aim a test of the $2.050 support zone in the coming sessions.
Looking at the chart, EOS price is currently trading in a bearish zone below the $2.500 and $2.550 resistance levels. However, there are chances of a decent upward move if the price stays above the $2.300 support.
4-hours MACD – The MACD for EOS/USD is slowly losing pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is now recovering towards the 50 level.
Major Support Levels – $2.300 and $2.050.
Major Resistance Levels – $2.500 and $2.550.
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Source: Live Bitcoin News