EOS reaches the crucial junction, the price action suggests breaking down

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

Key points of conversation

• The EOS price is positioned above a major support at $ 2.20 (Kraken Data Feed) compared to the US dollar.
• Recently, there was a break below a bullish trend line with support for $ 2.78 on the 4-hour chart of the EOS / USD pair.
• There seems to be an inverse head and shoulder model that is formed with resistance to $ 2.50.

EOS price analysis

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

The chart above indicates that the EOS price was trading at $ 2.97 and subsequently started a downward correction. It fell below support levels $ 2.60 and $ 2.50 to move to a short-term bearish zone. There was also a close below the $ 2.50 support and the 100 simple (4 hours) moving average.

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

Low was formed at $ 2.20 and the later adjusted price higher. It has moved above the Fib retracement level of 23.6% of the last drop from $ 2.9 top to $ 2.20 below. However, buyers failed to gain traction above the resistance area of ​​$ 2.50.

In the beginning, it seems that a reverse head and shoulder model is forming with resistance to $ 2.50. In addition, the 50% fiber retracement level of the last drop from $ 2.97 upwards to $ 2.20 below is close to the $ 2.58 level and the simple moving average of 100 (4 hours).

Therefore, a break above $ 2.50, $ 2.58 and the simple moving average at 100 (4 hours) could open the door to a sharp rise in EOS to $ 2.80 and $ 3.0. Otherwise, there are chances of a bearish break below $ 2.20 and $ 2.00.

Market data is provided by TradingView.