EOS price formed a support base near $4.50 and recovered against the US Dollar. EOS/USD is currently trading in a positive zone above $5.00 and it could gain further.
Key Talking Points
· EOS price is currently placed nicely above the $5.00 support zone (Data feed of Kraken) against the US Dollar.
· There is a major contracting triangle forming with current resistance at $5.30 on the 2-hours chart of the EOS/USD pair.
· The pair is likely to break the $5.30 and $5.40 resistance to set the pace for more gains in the near term.
EOS Price Analysis
After a major decline, there was a strong buying interest emerged near $4.10-20 in EOS price against the US Dollar. The EOS/USD pair started a solid recovery and moved above the $5.00 resistance area.
The chart above indicates that EOS price cleared the $5.50 resistance level and settled above the 100 simple moving average (2-hours). A high was formed near the $5.65 level and the price later corrected lower.
It declined below the $5.20 level and the 50% Fib retracement level of the last wave from the $4.42 low to $5.64 high. However, the decline was protected by the $4.60-80 zone and the 100 simple moving average (2-hours).
Moreover, the 61.8% Fib retracement level of the last wave from the $4.42 low to $5.64 high acted as support. The price recovered and is currently trading back above the $5.00 level.
At the outset, there is a major contracting triangle forming with current resistance at $5.30 on the 2-hours chart of the EOS/USD pair. It seems like the price is likely to break the triangle resistance and $5.35 to gain upside momentum.
Above $5.35, the price may perhaps test the last swing high at $5.64. Above this, EOS price could test the $6.00 resistance level.
On the downside, the $5.00 support area holds a lot of importance along with the 100 SMA. Below these, EOS could revisit the $4.40-4.50 pivot zone in the near term.
The market data is provided by TradingView.
