- EOS price is back in a bearish zone below the $3.300 support area against the US Dollar.
- The price is currently trading above the $3.000 support area and struggling to correct higher.
- There is a key contracting triangle forming with resistance near $3.100 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair remains at a risk of more downsides below the $3.000 support area.
EOS price is facing an increase in selling against the US Dollar, similar to bitcoin. The price is likely to break the $3.000 support area and continue lower.
EOS Price Analysis
This week, bitcoin, Ethereum, ripple, litecoin and EOS declined steadily against the US Dollar. Earlier, EOS price struggled to climb the $3.450 and $3.500 resistance levels.
As a result, the price started a fresh decline and broke the key $3.300 and $3.280 support levels. It opened the doors for more losses below the $3.200 support area and the 55 simple moving average (4-hours).
Finally, the price broke the $3.050 support area and tested the $3.000 area. A low was formed near $3.006 and the price is currently consolidating losses. An immediate resistance is near the $3.100 level.
Besides, the 23.6% Fib retracement level of the recent decline from the $3.435 high to $3.006 low is also near the $3.100 level. More importantly, there is a key contracting triangle forming with resistance near $3.100 on the 4-hours chart of the EOS/USD pair.
Thus, if there is an upside break above the $3.100 and $3.150 resistance levels, EOS price could test the $3.220 resistance zone. It coincides with the 50% Fib retracement level of the recent decline from the $3.435 high to $3.006 low.
The main resistance is near the $3.280 level and a bearish trend line on the same chart. If there is a successful break above the $3.300 area and the 55 simple moving average (4-hours), the price could start a nice upward move.
Conversely, the price could fail to climb above $3.150 or $3.220. In the mentioned case, the price could break the $3.000 support area and continue lower. The next major support is near $2.820, followed by the $2.750 level.
Looking at the chart, EOS price is trading in a downtrend below the $3.200 and $3.280 resistance levels. In the short term, there could be an upside correction, but upsides are likely to remain capped below $3.300. The bears may perhaps eye a breakdown below $3.000 in the near term.
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 40 level.
Major Support Levels – $3.000 and $2.850.
Major Resistance Levels – $3.200 and $3.300.