EOS price analysis: EOS/USD retreats from recent high, recovery capped by $3.8

EOS was the best-performing altcoin on September 7, as the coin has gained over 10% of its value in a single day and tested an area above $3.8, which is the highest level since mid-August. At the time of writing, EOS/USD is changing hands at $3.68, 1% higher on a day-on-day basis. Since the beginning of Monday, the coin has lost nearly 3% amid technical correction strengthened by the general sell-off in the cryptocurrency market. 

EOS takes the 8th place in the global cryptocurrency rating with the current market value of $3.4 billion.

EOS/USD, the technical picture

From the intraday point of view, the initial support awaits us on approach to $3.50. SMA200 (Simple Moving Average) 4-hour located on the approach to the barrier is likely to slow down the sell-off and allow for the upside correction. However, once it is out of the way, the downside is likely to gain traction with the next focus on $3.30 (SMA50 4-hour) and psychological $3.30. 

On the upside, we will need to see a sustainable move above $3.8-$3.90 area to allow for an extended recovery towards psychological barrier $4.00. This resistance zone is packed with strong technical barriers including SMA50 daily and the upper line of 1-day Bollinger Band. Also, it stopped the recent rally and has been limiting re recovery since the weekend. It means that this resistance will be a hard nut to crack for EOS bulls.

EOS/USD, 4-hour chart