Crypto Analysis

EOS Price Analysis: Remains In Strong Downtrend Below $2.25

EOS price declined heavily and broke the $2.00 and $1.80 support levels against the US Dollar. Sellers remain in control as long as the price is below $2.25.

Key Talking Points

  • EOS price declined significantly after it settled below the $4.00 support (Data feed of Kraken) against the US Dollar.
  • There is a crucial bearish trend line formed with resistance at $2.20 on the 4-hours chart of the EOS/USD pair.
  • The pair remains sell on rallies as long as there is no close above $2.25.

EOS Price Analysis

During the past few days, there was a steady decline from the $3.50 swing high in EOS price against the US Dollar. The EOS/USD pair broke the $3.00 and $2.00 support levels to enter a major downtrend.

EOS Price Analysis Chart

The chart above indicates that EOS price even broke the $1.80 support level and settled below the 100 simple moving average (4-hours). The decline was such that the price traded close to the $1.50 zone and formed a low at $1.52.

Later, the price corrected higher above the $1.60 and $1.80 resistance levels. It also moved above the 23.6% Fib retracement level of the last decline from the $3.04 high to $1.52 low.

However, there are many hurdles for buyers near the $2.00 and $2.20 levels. More importantly, there is a crucial bearish trend line formed with resistance at $2.20 on the 4-hours chart of the EOS/USD pair.

Above the trend line, the next main resistance is near $2.25 and the 50% Fib retracement level of the last decline from the $3.04 high to $1.52 low. As long as the price is below the $2.25-2.30 resistance zone, it remains in a strong downtrend.

Above $2.30, the price may perhaps rise towards the $2.50 level and the 100 simple moving average (4-hours). On the downside, an initial support is at $1.80, below which EOS price may drop back to $1.50. The overall trend remains bearish unless buyers gain pace above $2.25 in the near term. Similarly, litecoin and ripple are struggling to gain bullish momentum above key resistances.

The market data is provided by TradingView.

Aayush Jindal
About author

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets Reach Aayush via email: aayushjindal@ethereumworldnews.com
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