‎EigenLayer Bearish Momentum Strengthens as Price Rejects Key Order Block

‎EIGENUSD Market Analysis – August 25

‎EigenLayer resumes its bearish momentum as price rejects a critical daily bearish order block, signaling a potential continuation of downside movement.

‎EIGENUSD Key Levels

‎Support Levels: $1.040, $0.520
‎Resistance Levels: $1.660, $2.150

‎EIGENUSD Long-Term Trend: Bearish

‎EigenLayer continues to exhibit a strong bearish outlook following a decisive rejection from a daily bearish order block. In February, price confirmed the bearish trend with a break of structure below the $1.040 demand level, extending the prevailing downside momentum. By May 2025, price made a corrective bullish push that reached into the unmitigated daily bearish order block.
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‎The first reaction at this zone produced a bearish move, though it lacked the strength to sustain momentum as price briefly reversed upward. However, the second test of this order block in June formed a clear double-top pattern, adding confluence to the bearish continuation bias. This rejection reinforced bearish sentiment and signaled stronger downside potential.
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‎Adding to the bearish case, price developed a failed low structure, confirming a shift in momentum back to sellers’ control. With this, the market is now expected to retest and potentially break through the $1.040 level, opening the path toward the $0.520 demand zone as the next major bearish target.

‎EIGENUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, a failed high has established a lower-high structure, further aligning with the bearish narrative. This formation coincided with a break of the ascending trendline support, leading to renewed downward pressure.
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‎The 4-hour Relative Strength Index (RSI) also supports this view, showing weakening price strength as it trends toward oversold conditions. A temporary retracement is likely once oversold levels are reached, potentially retesting the broken trendline support. However, such a move would likely serve as a pullback before price resumes its bearish trend.

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