Eigen Layer (EIGENUSD )Faces Bearish Reversal After Failed Bullish Attempt

EIGENUSD Market Analysis – August 4

‎EIGENLAYER faces a renewed bearish reversal after a failed bullish attempt, signaling a continuation of its long-term downward trend.

‎EIGENUSD Key Levels

‎Support Levels: $1.040, $0.600
‎Resistance Levels: $1.580, $2.130

‎EIGENUSD Long-Term Trend: Bearish

‎EIGENLAYER has resumed its primary bearish trend following a temporary bullish correction. In February 2025, a significant bearish break of structure occurred, causing price to breach the key $1.040 demand level. Although a bullish retracement followed—pushing price as high as the $0.600 level—this move failed to establish a full trend reversal.
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‎The bullish rally appeared strong but ultimately fell short as price was unable to reclaim and hold above the $1.040 level. Instead, the level acted as resistance, generating another bullish reaction that formed a lower high near a key daily order block. This failure to surpass the previous high resulted in the formation of a failed high pattern, signaling a shift back toward bearish sentiment.
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‎Price is currently declining once again, approaching the $1.040 level with bearish pressure building. The daily Moving Average now aligns with this bearish momentum, reinforcing the likelihood of further downside as sellers regain control.

‎EIGENUSD Medium-Term Trend: Bearish

‎On the 4-hour chart, the bearish outlook is further validated by the formation of a Head and Shoulders pattern which adds confluence to the broader bearish narrative. As price retested the $1.040 demand zone, a brief bullish reaction lifted it above the 4-hour Moving Average, suggesting temporary strength. However, this upward move appears to lack sustainability. The 4-hour Relative Strength Index (RSI) is nearing the overbought territory, indicating reduced bullish momentum.
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‎With price approaching the 4-hour order block and overbought conditions emerging, a fresh wave of selling pressure is anticipated. If the bearish scenario plays out, EIGENUSD could breach the $1.040 level decisively, continuing its downward trajectory in alignment with the prevailing long-term trend.

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