EOS price fell sharply and broke the $6.00 support against the US Dollar. EOS/USD is currently struggling to hold the $5.00 support and it remains at risk of more losses.
Key Talking Points
·EOS price declined heavily and broke the $6.50 and $6.00 support levels (Data feed of Kraken) against the US Dollar.
·There is a short-term breakout pattern forming with resistance near $5.10 on the 2-hours chart of the EOS/USD pair.
·The pair may perhaps break the $5.00 support if it fails to move past the $5.10 and $5.40 resistances.
EOS Price Analysis
There were nasty declines noted in EOS price from well above the $8.00 level against the US Dollar. The EOS/USD pair tumbled and broke the $7.00, $6.50 and $6.00 support levels.
The chart above indicates that EOS price even broke the $5.00 support and formed a new monthly low at $4.84. Later, the price started an upside correction and moved above the $5.00 level.
There was a break above the 23.6% Fib retracement level of the last major drop from the $5.94 high to $4.84 low. However, the upside move was capped by the $5.25 resistance zone.
Moreover, it seems like the price was rejected near the 38.2% Fib retracement level of the last major drop from the $5.94 high to $4.84 low. The price moved down once again and is currently consolidating near the $5.00 level.
There is also a short-term breakout pattern forming with resistance near $5.10 on the 2-hours chart of the EOS/USD pair. Should the price break the $5.10 resistance, it could recover towards the $5.25 and $5.50 resistance levels.
However, a proper close above the $5.50 and $6.00 levels is needed for more gains. On the other hand, if there is a downside break below the $5.00 and $4.90 level, the price could extend slides towards the $4.50 level.
Therefore, the $5.00 support holds a lot of importance. As long as EOS price is above $5.00, it could recover towards $5.50 and $6.00.