EOS price declined significantly after it failed to break the $6.200 resistance area. It traded as low as $3.302 and it is currently correcting higher towards the $3.850 and $4.000 resistance levels.
- EOS price declined heavily below the $5.560 and $5.200 support levels.
- A major bearish trend line is forming with resistance near $4.000 on the 2-hours chart.
- The price is likely to struggle near the $4.000 and $4.100 resistance levels in the near term.
EOS Price Analysis and Prediction
In the past few days, there were heavy losses in bitcoin, Ethereum, ripple and EOS against the US Dollar. EOS price started a significant decline after it broke the $5.800 and $5.560 support levels and is down more than 40% in the past seven days.
Click to Enlarge Chart
Looking at the 2-hours chart of EOS/USD, the pair even broke the $5.000 support level and settled below the 25 simple moving average (2-hours). The decline was such that the price even spiked below the $4.000 support level.
A new multi-month low was formed near $3.302 and the price recently started an upside correction. It broke the $3.500 level plus the 23.6% Fib retracement level of the last drop from the $4.413 high to $3.302 low.
However, there are many hurdles on the upside near the $3.850 and $3.900 levels. Moreover, there is a major bearish trend line is forming with resistance near $4.000 on the same chart.
Additionally, the 50% Fib retracement level of the last drop from the $4.413 high to $3.302 low is also near the $3.850 level to act as a resistance. The main resistance is near the $4.000 handle and the 25 simple moving average (2-hours).
Therefore, if there is an upside break above the $3.850 and $4.000 levels, there could be a decent rise in the coming sessions. The next key resistance could be near the $4.675 and the $4.800 levels.
On the other hand, if EOS price fails to surpass the $3.850 and $3.900 resistance levels, there could be another drop towards the $3.300 level. The price may even break the $3.300 low and test $3.000.
The market data is provided by TradingView, Bitfinex.