EOS price bounced back recently after trading close to the $5.000 support area. However, EOS bulls are facing a lot of hurdles near the $5.500 resistance area.
- EOS price traded as low as $5.024 and recently bounced back above $5.300.
- There is a crucial bearish trend line in place with resistance at $5.480 on the 2-hours chart.
- The price must surpass the $5.500 resistance to climb towards $5.700 and $5.850.
Read: Trade EOS at eToro
EOS Price Analysis and Prediction
Earlier this week, there was a sharp decline in EOS price from the $5.565 swing high. The price broke the $5.420, $5.300, and $5.200 support levels. It even cleared the $5.100 support and traded as low as $5.024.
Click to Enlarge Chart
Looking at the 2-hours chart of EOS/USD, the pair started a strong recovery after forming a new weekly low at $5.024. It broke the $5.200 resistance and the 25 simple moving average (2-hours). There was even a break above the 50% Fib retracement level of the last downward move from the $5.565 high to $5.024 low.
Besides, the recent rally in bitcoin price above $5,550 helped EOS, Ethereum, ripple, bitcoin cash, cardano and other cryptocurrencies in gaining bullish momentum.
EOS price even broke the $5.400 level and tested the 76.4% Fib retracement level of the last downward move from the $5.565 high to $5.024 low. However, the bulls struggled to gain momentum above the $5.440 and $5.450 resistance levels.
More importantly, there is a crucial bearish trend line in place with resistance at $5.480 on the same chart. A convincing break above the trend line and a follow through above $5.500 is needed for a strong upward move towards the $5.700 pivot level.
The $5.700 is a major barrier for the bulls since it represents the 1.236 Fib extension level of the last downward move from the $5.565 high to $5.024 low.
Alternatively, if there is a bearish break below the $5.250 support, EOS price could revisit the $5.100 support zone. Any further losses might increase selling pressure and the price might even slide below the key $5.000 support area.
The market data is provided by TradingView, Bitfinex.
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