EOS price declined heavily from the $4.50 resistance against the US Dollar. However, it is finding a strong support at $3.40 and it could bounce back in the near term above $3.80.
After a strong bullish wave, bitcoin, Ethereum and EOS price declined heavily against the US Dollar. Earlier, the EOS/USD pair gained traction and broke the $4.00 resistance (as discussed in the last analysis). There was a clear break above the $4.00 and $4.20 resistance levels. However, the price found a strong selling interest near the $4.50 level. A new monthly high was formed at $4.54 and later the price started a downside correction.
It declined sharply and broke the $4.20 and $4.00 support levels. During the slide, the price traded below the 50% Fib retracement level of the last wave from the $2.76 low to $4.54 high. Besides, there was a close below the $3.80 support and the 55 simple moving average (4-hours). Finally, there was a dip below the $3.50 level before buyers appeared near $3.35-3.40. The 61.8% Fib retracement level of the last wave from the $2.76 low to $4.54 high acted as a support.
Moreover, there is a major bullish trend line in place with support at $3.50 on the 4-hours chart of the EOS/USD pair. At the moment, the price is trading nicely above the $3.40 support. On the upside, an initial resistance is near the $3.80 level and the 55 simple moving average (4-hours). A break above $3.80 could push the price towards the $4.00 resistance. If buyers remain in action, the price may perhaps climb towards the $4.20 and $4.25 levels.
Looking at the chart, EOS price is holding the key $3.35-3.40 support area. If it fails to stay above $3.35, there could be a sharp decline. Then next key support is at $3.20 and $3.18, below which the price could test $3.00. Overall, there are high chances of more gains as long as the price is above $3.35.
Hourly MACD – The MACD for EOS/USD is about to move back in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently just below the 50 level.
Major Support Levels – $3.35 and $3.18.
Major Resistance Levels – $3.80 and $4.00.
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