EOS Price Analysis: EOS/USD’s Rejection Near Key Resistance
EOS price spiked above the $5.30 and $5.40 levels against the US Dollar. EOS/USD faced an important hurdle near $5.50 and reversed its gains.
Key Talking Points
EOS price faced an important resistance near the $5.50 level (Data feed of Kraken) against the US Dollar.
There is a crucial bearish trend line in place with resistance at $5.50 on the 2-hours chart of the EOS/USD pair.
The pair is back below the $5.30 level and it is currently consolidating the recent move.
EOS Price Analysis
There was a decent support base formed near the $5.00 level in EOS price against the US Dollar. The EOS/USD pair started an upward move and traded above the $5.30 and $5.40 resistance levels.
The chart above indicates that EOS price gained momentum above the $5.40 level and spiked above the 50% Fib retracement level of the last decline from the $5.88 high to $4.92 low.
However, the upward move was capped by the $5.50 resistance zone and the 100 simple moving average (2-hours). Additionally, the 61.8% Fib retracement level of the last decline from the $5.88 high to $4.92 low also acted as a resistance.
More importantly, there is a crucial bearish trend line in place with resistance at $5.50 on the 2-hours chart of the EOS/USD pair. The trend line, $5.50, and the 100 simple moving average (2-hours) are major barriers for buyers in the near term.
The price trimmed most of its gains and it is currently trading below the $5.40 and $5.30 levels. An initial support is near the $5.20 level, below which the price may retest the $5.00 handle in the near term.
On the other hand, an initial resistance is near the $5.40 level. Though, EOS price must break the $5.50 resistance and the 100 simple moving average (2-hours) to gain upward momentum. Above these, the price may possibly revisit the $5.80 resistance area. The overall price action is positive as long as the price is above $5.00.