EOS price declined recently after testing the $3.00 resistance area against the US Dollar. The $2.20 support holds the key for the next move versus USD and BTC.

Key Talking Points

This past week, there was a solid upward move in EOS price above the $2.40 and $2.50 resistance levels against the US Dollar. The EOS/USD pair gained momentum above the $2.80 resistance and traded close to the $3.00 handle.

The chart above indicates that EOS price traded as high as $2.97 and later started a sharp downside correction. It declined below the $2.60 and $2.50 support levels to move into a short term bearish zone. There was even a close below the $2.50 support and the 100 simple moving average (4-hours).

More importantly, there was a break below a key bullish trend line with support at $2.78 on the 4-hours chart of the EOS/USD pair. The decline was such that the price tested the main support near the $2.20 level.

A low was formed at $2.20 and the price later corrected higher. It moved above the 23.6% Fib retracement level of the last drop from the $2.97 high to $2.20 low. However, buyers failed to gain traction above the $2.50 resistance area.

At the outset, it seems like an inverse head and shoulders pattern is forming with resistance at $2.50. Besides, the 50% Fib retracement level of the last drop from the $2.97 high to $2.20 low is near the $2.58 level and the 100 simple moving average (4-hours).

Therefore, a break above $2.50, $2.58, and the 100 simple moving average (4-hours) could open the doors for a sharp upward move in EOS towards $2.80 and $3.0. If not, there are chances of a downside break below $2.20 and $2.00.

The market data is provided by TradingView.

The post EOS Reaches Crucial Juncture, Price Action Suggests Upside Break appeared first on Ethereum World News.

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