- EOS price surged above the $2.700 and $2.850 resistance levels against the US Dollar.
- The price is currently correcting lower from the $2.976 swing high.
- There is a key contracting triangle forming with support near $2.720 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
- The pair is likely to bounce back as long as it is above the $2.600 support area.
EOS price is correcting gains from the $3.000 hurdle against the US Dollar, just like bitcoin. However, the bulls are likely to protect downsides below the $2.600 support.
EOS Price Analysis
This week, there was a strong rise in bitcoin, Ethereum, ripple, litecoin and EOS against the US Dollar. EOS price climbed above the $2.700 and $2.850 resistance levels.
Finally, the price traded close to the $3.000 resistance area and a high was formed near $2.976. Recently, the price started a downside correction below the $2.850 and $2.750 levels.
Furthermore, there was a break below the 23.6% Fib retracement level of the rally from the $2.411 low to $2.976 high. At the moment, the price is finding support near the $2.700 area.
More importantly, there is a key contracting triangle forming with support near $2.720 on the 4-hours chart of the EOS/USD pair. The 50% Fib retracement level of the rally from the $2.411 low to $2.976 high is also near the $2.700 support area.
Besides, the 55 simple moving average (4-hours) is waiting near the $2.680 level to provide support. The next key support is near the $2.600 level or the 61.8% Fib retracement level of the rally from the $2.411 low to $2.976 high.
If the price fails to stay above the $2.700 and $2.600 support levels, there is a risk of a downside extension below the $2.500 support. In the mentioned case, EOS could revisit the $2.200 support area.
Conversely, the price is likely to bounce back from $2.700 or $2.680. An initial resistance is near the $2.850 level, above which the price is likely to revisit the $3.000 resistance area. A clear break above $3.000 might call for an increase to $3.400.
Looking at the chart, EOS price is trading above a couple of important supports near $2.700 and $2.600. Therefore, it could start a fresh increase above $2.850 unless there is a clear break below $2.600.
Technical indicators
4-hours MACD – The MACD for EOS/USD is slowly gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Levels – $2.700 and $2.600.
Major Resistance Levels – $2.850 and $3.000.
