EOS price started a strong increase after it broke the $3.300 resistance zone against the US Dollar. A new monthly high is formed near $3.871 and it seems like there are chances of more upsides.
- EOS formed a strong support base above $3.000 and rallied over 10% in the past few hours.
- The price settled nicely above the $3.500 pivot level and the 100 SMA (H4).
- There was a break above a key bearish trend line with resistance near $3.200 on the 4-hours chart of the EOS/USD pair (data feed from Kraken).
- The pair could continue to rise above the $3.900 and $4.000 resistance levels in the near term.
EOS Price is Gaining Momentum
This past week, EOS price formed a strong support near the $2.850 and $3.000 levels. It started a fresh increase above the $3.200 resistance level and moved into a positive zone (similar to bitcoin, ETH, and TRX).
There was also a break above a key bearish trend line with resistance near $3.200 on the 4-hours chart of the EOS/USD pair. The pair gained pace above the $3.500 pivot level and the 100 simple moving average (4-hours).
It opened the doors for more gains and the price traded to a new monthly high near $3.871. It is currently consolidating gains near the $3.800 level. An initial support is near the $3.650 level. It is close to the 23.6% Fib retracement level of the recent rally from the $2.877 low to $3.871 high.
EOS price trades above $3.600. Source: TradingView.com
The first major support on the downside is near the $3.500 level (the recent breakout zone). The next support is near the $3.350 level or the 50% Fib retracement level of the recent rally from the $2.877 low to $3.871 high.
On the upside, there is a short-term resistance near the $3.850 level. A successful close above the $3.850 level might open the doors for a push towards $4.000 or even $4.200 in the near term.
Dips Likely to be Limited
If EOS starts a downside correction, it might find bids near the $3.500 level. The main support is now near the $3.350 and $3.300 levels.
If there is a downside break below the $3.300 support, the price could extend its decline towards the $3.000 support zone.
Technical indicators:
4-hours MACD – The MACD is now gaining pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for EOS/USD is now in the overbought zone.
Major Support Levels – $3.500, followed by $3.350.
Major Resistance Levels – $3.850, $3.900 and $4.000.
