EOS Price Analysis: EOS/USD Remains Sell on Rallies Near $5.70

EOS price declined recently and traded towards the $4.50 support against the US Dollar. EOS/USD is currently recovering, but it remains sell on rallies near $5.50 and $5.70.

Key Talking Points

EOS price recently declined below $5.00 before buyers appeared near $4.60 (Data feed of Kraken) against the US Dollar.There is a declining channel in place with resistance at $5.10 on the 2-hours chart of the EOS/USD pair.The pair may correct above the $5.10 level, but it could face sellers near $5.50 and $5.70.EOS Price Analysis

This past week, there was a sharp downside move in EOS price from well above $6.50 against the US Dollar. The EOS/USD pair declined and broke the $6.00 and $5.50 support levels.

The chart above indicates that EOS price even traded below the $5.00 support level and formed a low at $4.62. Later, there was an upside correction and the price moved above the $4.80 level.

The price is currently trading above the $5.00 level, but it is facing resistance near the 23.6% Fib retracement level of the last decline from the $6.60 high to $4.62 low. Moreover, there is a declining channel in place with resistance at $5.10 on the 2-hours chart of the EOS/USD pair.

It seems like the pair could climb above the channel resistance in the short term, but it could face many resistances near the $5.50 and $5.60 levels.

The 50% Fib retracement level of the last decline from the $6.60 high to $4.62 low is also near the $5.60 level along with the 100 hourly simple moving average. Therefore, if the price continues to move higher, it is likely to face a strong selling interest near the $5.50 and $5.60 levels.

Overall, EOS price is showing signs of a short-term recovery above $5.00 and $5.10. However, the $5.50 and $5.70 resistance levels are crucial barriers for a larger recovery. On the downside, the $4.60 and $4.50 levels are decent supports.

The market data is provided by TradingView.

loading...

Get real time updates directly on you device, subscribe now.

Subscribe

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets

Source link

Read the full article