EOS price topped near the $6.05 level and corrected below $5.50. The price is currently forming a major breakout pattern and seems to be setting up for the next break either above $5.60 or towards $4.90.
- EOS price corrected lower and tested the $5.10 support area.
- There is a crucial contracting triangle in place with resistance at $5.50 on the 2-hours chart.
- The price could either rally above the $5.60 resistance or correct further towards $4.90.
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EOS Price Analysis and Prediction
After a strong rise, EOS price faced a strong resistance near the $6.05-6.10 area. The price traded as high as $6.075 and later started a significant downside correction. It broke the $6.00 and $5.80 support levels to move into a short term bearish zone.
Click to Enlarge Chart
Looking at the 2-hours chart of EOS/USD, the pair even broke the $5.50 support area and settled below the 25 simple moving average (2-hours). The price traded close to the $5.00 support area and a swing low was formed at $5.109.
Later, the price traded in a range and recently climbed above the $5.40 level and the 25 simple moving average (2-hours). There was a break above the 23.6% Fib retracement level of the last downside correction from the $6.075 high to $5.109 low.
The price even spiked above the $5.60 level and the 50% Fib retracement level of the last downside correction from the $6.075 high to $5.109 low. However, the bulls failed to hold gains above $5.60 and the price retreated below $5.50.
At the outset, there is a crucial contracting triangle in place with resistance at $5.50 on the same chart. If EOS clears the triangle resistance and jumps above $5.52, there are high chances of a fresh increase above the $5.80 and $5.95 levels in the coming sessions.
Alternatively, if there is a downside break below the $5.28 support, the price could extend the last downside correction below the $5.20 and $5.10 levels. It could even test $4.90, where EOS bulls are likely to protect further losses.