EigenLayer (EIGEN) Faces Strong Rejection at 1.6350

Market Analysis – June 17

EigenLayer turned bullish in May following a decisive price pump from the key demand zone at 0.7540, leading to a rapid surge in buying momentum. However, the rally encountered significant resistance near 1.6350, resulting in a sharp rejection. The price has since retreated, signaling a potential short-term bearish correction as sellers regain control.

EigenLayerKey Levels
•Demand (Support) Levels: 1.0280, 0.7540, 0.5000
•Supply (Resistance) Levels: 1.6350, 2.1140, 3.0000

EigenLayerLong-Term Trend: Ranging
The 30-period Moving Average (MA) has played a crucial role as dynamic resistance during previous downtrends, consistently capping upward retracements. Each test of this MA led to renewed selling pressure, reinforcing its importance as a trend-defining level.

In April, EigenLayer entered deeply oversold conditions after touching $0.7540, as indicated by compressed candlesticks and declining volatility—a classic precursor to a breakout. The subsequent rally in May saw a sharp upward impulse, driving prices toward 1.6350, where momentum abruptly stalled. The RSI (Relative Strength Index) spiked into overbought territory, suggesting exhaustion among buyers and increasing the likelihood of a pullback.

EigenLayerLong-Term Trend: Bearish

On the lower timeframes, the 30 and 50-period MAs have coiled continuously at the center of the range below 1.6350, reflecting a period of consolidation—a common pattern in crypto signals when markets prepare for breakout opportunities. The price is currently aiming for 1.0280 as it appears as the next critical support level.