The price of EOS dropped heavily, breaking the $2.00 and $1.80 support levels against the U.S dollar. As long as the price stays below $2.25, sellers will continue to be in control.
•The price of EOS declined greatly after it settled below the support level of $4.00 against the U.S dollar.
•A crucial bearish trend line was formed with resistance at $2.20 on the 4 hours chart of the EOS/USD Pair
•As long as there is no close above $2.25, the EOS/USD Pair remains sell on rallies.
Price Analysis: EOS
In the last few days, a steady decline was seen from the $3.50 swing high in the price of EOS against the U.S dollar. The pair broke at support levels of $3.00 and $2.00 to enter a major downtrend.
The price of EOS broke the $1.80 support level, settling below the 100 SMA (4 hours). The decline was such that the price traded close to the $1.50 zone, forming a low at $1.52.
Later there was a correction in its price above the resistance levels of $1.60 and $1.80. It also moved above the Fib retracement level of 23.6% from the last decline from the high $3.04 to the low $1.52.
However, buyers will face many hurdles around the $2.00 and $2.20 levels. Additionally, an important bearish trend line has been formed with resistance at $2.20 on the EOS/USD 4 hours chart.
Above the trend line, the next major resistance will be close to $2.25 and the 50% Fib retracement level of the last drop from the high $3.04 to low $1.52. As long as the price stays below the resistance zone of $2.25 – $2.30, it is in a strong downtrend.
Above $2.30, the price may increase towards the $2.50 level and the 100 SMA (4 hours). On the downside, an initial support is at $1.80, below which the price of EOS may fall back to $1.50.
Until buyers gain pace above $2.25 in the near term, the overall trend will remain bearish. Similarly, Ripple and Litecoin are striving to gain bullish momentum above key resistances.