EOS price is under a lot of pressure below the $4.20 support against the US Dollar. EOS/USD is likely to break the $2.00 support level to test the $1.00 handle.
Key Talking Points
EOS price settled below the all-important $4.20 support level (Data feed of Kraken) against the US Dollar.
There was a failure to clear a major bearish trend line with resistance at $5.00 on the daily chart of the EOS/USD pair.
The pair may continue to move down and it could even trade towards the $1.00 level.
EOS Price Analysis
The past few weeks were super bearish as EOS price settled below the all-important $4.20 support level against the US Dollar. The EOS/USD pair declined sharply and broke the $4.00 and $3.00 support levels.
The chart above indicates that EOS price earlier formed a decent support near $4.20 and bounced back. It recovered above the $6.00 level and the 23.6% Fib retracement level of the last slide from the $9.37 high to $4.18 low.
However, the upside move was capped by the $6.75 level. The 50% Fib retracement level of the last slide from the $9.37 high to $4.18 low also acted as a hurdle. The price started a fresh decline and finally broke the $4.20 support area.
It declined steadily and settled below the $3.00 level and the 100-day simple moving average. On the upside, there are many hurdles, starting with $2.50 and $3.00. More importantly, there is a major bearish trend line with resistance at $5.00 on the daily chart of the EOS/USD pair.
If there is an upside correction, the price is likely to face a lot of offers near the $3.00 or $4.00 levels. On the downside, it seems like the price is set for more losses below the $2.00 support.
To sum up, the current technical structure is very bearish for EOS price and it seems like sellers may attempt to push the price towards the $1.00 support area in the near future.