EOS Price Analysis: EOS/USD Facing Significant Resistance
EOS price declined below $7.50 and later it found support at $6.80 against the US Dollar. EOS/USD is currently correcting higher towards a major resistance near $7.50.
Key Talking Points
EOS price has formed a decent support near the $6.80 level (Data feed of Kraken) against the US Dollar.
There is a crucial bearish trend line in place with resistance near $7.50 on the 2-hours chart of the EOS/USD pair.
The pair may perhaps move higher, but it is likely to struggle near the $7.50 and $7.60 resistances.
EOS Price Analysis
There were further losses below the $8.00 level in EOS price this past week against the US Dollar. The EOS/USD pair even broke the $7.00 support and traded as low as $6.83
The chart above indicates that EOS price formed a base near the $6.80 level and started a short-term correction. It traded above the $7.00 level, but it seems to be facing hurdles near the 23.6% Fib retracement level of the last decline from the $8.47 high to $6.83 low.
Above $7.20, there is a significant resistance formed near the $7.50 level. An intermediate resistance is near the 100 simple moving average (2-hours) at $7.40. There is also a crucial bearish trend line in place with resistance near $7.50 on the 2-hours chart of the EOS/USD pair.
More importantly, the 50% Fib retracement level of the last decline from the $8.47 high to $6.83 low is at $7.65.
Therefore, if the price moves higher from the current levels, it could face a tough resistance near the $7.50 and $7.60 level. Should there a close above $7.60, the price may well break the $8.00 barrier.
On the downside, the $7.00 level is an initial support. Below this, the price could test the $6.80 support zone, which is an important barrier for sellers. As long as EOS price is above the $6.80 level, it may slowly make an upward move.
The current price action is positive above $7.00 level for a break above $7.20 to test $7.50.