EOS price declined heavily this past week and even broke the $6.000 support. It is currently consolidating gains and seems to be preparing for the next break. Can it climb higher similar to bitcoin and Ethereum?
- EOS price tested the $5.560 level and it is currently consolidating losses.
- A major breakout pattern is forming with resistance near $6.000 on the 2-hours chart.
- The price could either surge above the $6.000 resistance or start a fresh decline.
EOS Price Analysis and Prediction
In the past few days, there was a strong decline in EOS price below the $6.500 and $6.200 support levels. It even broke the $6.000 support level and traded close to $5.560. At the outset, it consolidating in a range and is preparing for the next break, while bitcoin and Ethereum recovered nicely in the past few sessions.
Click to Enlarge Chart
Looking at the 2-hours chart of EOS/USD, the pair settled below the $6.000 support and the 25 simple moving average (2-hours). The last swing low was formed near $5.563 and the price recently corrected higher.
It broke the $5.750 resistance and the $5.800 pivot level. There was a break above the 50% Fib retracement level of the last drop from the $6.394 high to $5.563 low.
However, the price struggled to clear the $6.000 and $6.1000 resistance levels. At the outset, it seems like there is a major breakout pattern forming with resistance near $6.000 on the same chart.
The 61.8% Fib retracement level of the last drop from the $6.394 high to $5.563 low is also near the $6.070 to act as a resistance. Therefore, if there is an upside break above the $6.000 and $6.070 levels, the price could stage a strong rise in the coming days.
The next major resistance is near the $6.350 and $6.400 levels, above which it could climb further towards $6.700. Conversely, if EOS price fails to climb above $6.000, there might be a fresh decline in the near term.
An initial support is near the $5.800 level, below which EOS may perhaps decline towards the $5.400 support area.
The market data is provided by TradingView, Bitfinex.
