EOS Price Analysis: EOS/USD Remains Sell on Rallies Near $5.70
EOS price declined recently and traded towards the $4.50 support against the US Dollar. EOS/USD is currently recovering, but it remains sell on rallies near $5.50 and $5.70.
Key Talking Points
EOS price recently declined below $5.00 before buyers appeared near $4.60 (Data feed of Kraken) against the US Dollar.
There is a declining channel in place with resistance at $5.10 on the 2-hours chart of the EOS/USD pair.
The pair may correct above the $5.10 level, but it could face sellers near $5.50 and $5.70.
EOS Price Analysis
This past week, there was a sharp downside move in EOS price from well above $6.50 against the US Dollar. The EOS/USD pair declined and broke the $6.00 and $5.50 support levels.
The chart above indicates that EOS price even traded below the $5.00 support level and formed a low at $4.62. Later, there was an upside correction and the price moved above the $4.80 level.
The price is currently trading above the $5.00 level, but it is facing resistance near the 23.6% Fib retracement level of the last decline from the $6.60 high to $4.62 low. Moreover, there is a declining channel in place with resistance at $5.10 on the 2-hours chart of the EOS/USD pair.
It seems like the pair could climb above the channel resistance in the short term, but it could face many resistances near the $5.50 and $5.60 levels.
The 50% Fib retracement level of the last decline from the $6.60 high to $4.62 low is also near the $5.60 level along with the 100 hourly simple moving average. Therefore, if the price continues to move higher, it is likely to face a strong selling interest near the $5.50 and $5.60 levels.
Overall, EOS price is showing signs of a short-term recovery above $5.00 and $5.10. However, the $5.50 and $5.70 resistance levels are crucial barriers for a larger recovery. On the downside, the $4.60 and $4.50 levels are decent supports.