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.

EOS Price

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.

Technical indicators

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.

Source: livebitcoinnews.com

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