EOS price declined recently and tested the $5.00 support against the US Dollar. EOS/USD may correct higher, but upsides are likely to be capped near the $5.25 level.
Key Talking Points
EOS price is under pressure as it broke the key $5.28-5.30 support area (Data feed of Kraken) against the US Dollar.
There was a break below a major contracting triangle support at $5.30 on the 2-hours chart of the EOS/USD pair.
The pair tested the $5.00 support area and it is currently correcting higher.
EOS Price Analysis
After EOS price failed to break the $5.40 and $5.50 resistance levels, there was a downside reaction against the US Dollar. The EOS/USD pair declined recently and broke a few important supports near the $5.30 level.
The chart above indicates that EOS price failed to break the $5.45-5.50 resistance area on a few occasions. As a result, there was a downside reaction below the $5.30 and $5.25 support levels.
More importantly, there was a break below a major contracting triangle support at $5.30 on the 2-hours chart of the EOS/USD pair. The pair settled below the $5.25 support and the 100 simple moving average (2-hours).
The decline was such that the price traded below the $5.00 support. A low was formed at $4.97 and later the price started an upside correction. It just moved above the 23.6% Fib retracement level of the last decline from the $5.47 high to $4.97 low.
However, there are many hurdles for buyers near the $5.25 and $5.30 levels, which acted as supports previously. Moreover, the 50% Fib retracement level of the last decline from the $5.47 high to $4.97 low is near the $5.22 level.
Therefore, if EOS price corrects higher from the current levels, it is likely to face sellers near the $5.25 or $5.30 levels. Only a close above the $5.30 level and the 100 simple moving average (2-hours) could push the price back in a bullish zone in the near term.