EOS price traded towards the $9.50 level against the US Dollar. EOS/USD is currently correcting lower and is approaching a crucial support near $8.25
Key Talking Points
· EOS price is holding an important support area near $8.25 (Data feed of Kraken) against the US Dollar.
· There is a connecting bearish trend line forming with resistance at $8.80 on the 2-hours chart of the EOS/USD pair.
· The pair is likely to resume its upside move as long as it is above $8.25.
EOS Price Analysis
After forming a decent support base near $7.00, there was a solid upward move in EOS price against the US Dollar. The EOS/USD pair gained traction and broke the $8.00 and $8.50 resistance levels.
The chart above indicates that the price spiked above the $19.00 resistance and formed a high at $19.42. Later, a downside correction was initiated and the price declined below the $19.00 level.
There was also a break below the 38.2% Fib retracement level of the last wave from the $7.06 low to $9.42 high. However, the decline found a strong support near $8.25 and the 100 simple moving average (2-hours).
The price jumped higher, but upsides were limited by the $9.00 resistance. There is also a connecting bearish trend line forming with resistance at $8.80 on the 2-hours chart of the EOS/USD pair.
Therefore, a break above the trend line and the $9.00 resistance is needed for more gains. Above these, the last swing high near $9.40 is the next resistance. Finally, the most important hurdle for buyers is near $10.00.
On the downside, the $8.25 support holds a lot of significance. It also coincides with the 50% Fib retracement level of the last wave from the $7.06 low to $9.42 high.
Should the price decline below $8.25, it may perhaps extend the current towards the $8.00 support. The overall price action is positive and suggests more gains as long as EOS is above the $8.25 support area.
Trade safe traders and do not overtrade!
