EOS Price Analysis: Can $2.60 Produce A Fresh Rally?
- EOS price started a major downside correction from the $3.121 high against the US Dollar.
- The price traded below the $3.000 and $2.800 support levels.
- There was a break below a major bullish trend line with support near $2.850 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair is currently holding a crucial support at $2.600, which holds the key in the near term.
EOS price is consolidating above a few important supports against the US Dollar, while bitcoin is rising. The price must stay above the $2.600 support level to start a decent rally above $2.850.
EOS Price Analysis
This past month, EOS price rallied above the $2.850 and $3.000 resistance levels against the US Dollar. The price traded as high as $3.121 before it started a substantial downside correction in the past few days.
There was a break below the $3.000 support zone. The price traded below the $2.850 support level and the 55 simple moving average (4-hours). Moreover, there was a break below a major bullish trend line with support near $2.850 on the 4-hours chart of the EOS/USD pair.
The pair traded below the 50% Fib retracement level of the main upward move from the $2.439 low to $3.121 high. Finally, there was a spike below the $2.750 level, but the price found a strong support near the $2.600 zone.
It seems like the previous breakout zone at $2.600 is acting as a strong support. The 76.4% Fib retracement level of the main upward move from the $2.439 low to $3.121 high is also providing support.
The price is currently correcting higher and trading above $2.700. On the upside, there is a major resistance forming near the $2.850 level and the 55 simple moving average (4-hours).
There is also a connecting bearish trend line with resistance near $2.850 on the same chart. Therefore, the price must climb above the $2.850 resistance to start a fresh rally in the near term. Conversely, it could fail to break the $2.850 resistance and continue lower.
Looking at the chart, EOS price is clearly trading above a major support area at $2.600. Having said that, the bulls need to gain strength above $2.850 to start a fresh rally. If not, the price might decline towards 2.350.
4-hours MACD – The MACD for EOS/USD is losing momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is now recovering towards the $45-50 zone.
Major Support Levels – $2.600 and $2.350.
Major Resistance Levels – $2.850 and $3.000.