EOS Price Analysis: Correcting Lower But Dips Remain Supported

• EOS price rallied recently above the $3.200 and $3.580 resistance levels against the US Dollar.
• The price traded as high as $4.066 and it is currently correcting lower.
• There is a major contracting triangle forming with support near $3.350 on the 4-hours chart of the EOS/USD pair (data feed from Coinbase).
• The pair could decline in the short term, but dips remain well supported near $3.350.

EOS price is trading in a nice uptrend above $3.350 against the US Dollar, just like bitcoin. It could correct a few points, but the bulls are likely to remain active above $3.200.

EOS Price Analysis

This week, bitcoin, Ethereum, ripple, litecoin and EOS gained bullish momentum against the US Dollar. EOS price started a strong rise and broke a couple of important hurdles near $3.200 and $3.580 to enter a positive zone.

The price settled above $3.500 and the 55 simple moving average (4-hours). Finally, the price spiked towards $4.000 and a high is formed near $4.066. Recently, the price started a downside correction below the $4.000 level.

It broke the 23.6% Fib retracement level of the recent upsurge from the $2.936 low to $4.066 high. EOS price is now approaching the key $3.600 and $3.500 support levels.

Besides, the 50% Fib retracement level of the recent upsurge from the $2.936 low to $4.066 high is near the $3.500 level to provide support. More importantly, there is a major contracting triangle forming with support near $3.350 on the 4-hours chart of the EOS/USD pair.

Therefore, dips remain well supported near the $3.500 level. If there is a downside break, the price might test the $3.100 support or the 55 simple moving average (4-hours).

On the upside, an initial resistance for the bulls is near the $3.700 level. A clear break above the $3.700 level might open the doors for more gains in the coming sessions.

In the mentioned bullish case, the price is likely to accelerate above $3.800 and $3.850. The main hurdle is near the $4.000 level, above which there are high chances of another surge towards the $5.000 resistance area.

Looking at the chart, EOS price is trading in a bullish zone above a couple of key supports near $3.500 and $3.350. As long as there is no close below the $3.350 support, the price is likely to climb back towards the $4.000 level.

Technical indicators

4-hours MACD – The MACD for EOS/USD is slowly losing momentum in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI is still well above the 50 level.

Major Support Levels – $3.500 and $3.350.

Major Resistance Levels – $3.700 and $4.000.

Tags: EOS