EOS price trimmed most its gains and declined below the $2.40 support against the US Dollar. It seems like EOS is now preparing for the next key break versus the USD and BTC.
Key Talking Points
- EOS price is currently trading above the $2.20 and $2.15 support levels (Data feed of Kraken) against the US Dollar.
- There is a crucial bearish trend line in place with resistance at $2.30 on the 4-hours chart.
- The price could either rally above the $2.30-2.40 resistance or decline below $2.15.
EOS Price Analysis
Recently, there was a decent upward move above the $2.30 and $2.40 levels in EOS price against the US Dollar. However, the price failed to break the $2.50 resistance and later started a downside move.
The chart above indicates that EOS price topped near the $2.48 level and later moved below the $2.40 support level. There was a proper close below the $2.30 level and the 100 simple moving average (4-hours).
The price tested the $2.15 support and later corrected above the $2.20 level. There was a break above the 50% Fib retracement level of the last drop from the $2.48 high to $2.15 low. However, the recovery faced a strong resistance near the $2.32-2.35 zone.
Moreover, there is a crucial bearish trend line in place with resistance at $2.30 on the 4-hours chart. There was also a failure near the 61.8% Fib retracement level of the last drop from the $2.48 high to $2.15 low.
At the outset, the price is consolidating in a range and it seems like it is preparing for the next break either above $2.35 or below $2.20. A proper break above the $2.30-2.35 resistance zone may push the price towards the $2.50 resistance. Any further gains will most likely set the pace for a move towards $3.00.
On the other hand, if EOS buyers fail to gain pace above the $2.35 level, there could a bearish break. A downside break below the $2.20 and $2.15 support levels could push the price towards the $2.00 handle.
The market data is provided by TradingView.