EOS price broke the key $5.070 and $4.855 support levels to enter a bearish zone against the US Dollar. EOS could correct higher, but upsides are likely to remain capped versus USD, BTC and ETH.
Key Talking Points
- EOS price broke the main $5.070 and $4.855 support levels (Data feed of Kraken) against the US Dollar.
- There is a major bearish trend line in place with resistance near $5.050 on the 4-hours chart.
- The price could correct higher, but it is likely to struggle near $4.855 and $5.000 in the near term.
EOS Price Analysis
This past week, there was a sharp decline in EOS and other cryptocurrencies (bitcoin, Ethereum and litecoin) against the US Dollar. EOS price broke many important supports such as $5.070, $4.855 and $4.750 to enter a bearish zone.
The chart above indicates that EOS price broke a major bullish trend line at $5.180 to start a strong downward move. There was a proper close below the $4.855 support level and the 100 simple moving average (4-hours).
Finally, there was a break below the $4.500 support and the price traded as low as $4.289. The price is currently consolidating losses below the $4.555 resistance plus the 23.6% Fib retracement level of the last drop from the $5.387 high to $4.289 low.
On the upside, there is a strong resistance formed near the $4.855 and $5.050 levels. The 50% Fib retracement level of the last drop from the $5.387 high to $4.289 low is near $4.855 (the previous support area).
Moreover, there is a major bearish trend line in place with resistance near $5.050 on the 4-hours chart. Above the trend line, the 100 simple moving average (4-hours) is near the $5.125 level.
Therefore, EOS price is likely to face a lot of hurdles on the upside near the $4.855, $5.000, $5.050 and $5.125 levels. In the short term, there could be an upside correction, but it might be seen as a selling opportunity as long as the price is below $5.050. On the downside, the main supports are near $4.300, $4.030 and $3.800.
The market data is provided by TradingView.