‎EigenLayer Consolidates Ahead of Potential Bearish Continuation

EIGENUSD Market Analysis – September 2

‎EigenLayer finds itself in a consolidation phase as price action signals the likelihood of another bearish wave in the coming sessions.

‎EIGENUSD Key Levels

‎Support Levels: $1.100, $0.670
‎Resistance Levels: $1.500, $2.100

‎EIGENUSD Long-Term Trend: Bearish

‎EigenLayer has remained in a pronounced bearish trend, with the most recent significant lower high established in mid-February 2025, setting the stage for further downside movement. This decline extended until price reached the $0.670 demand level, where the daily Relative Strength Index (RSI) also dipped into the oversold region. This technical confluence sparked a short-lived bullish momentum.
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‎Since that February high, the current swing low remains confined between the lower high and the $0.670 demand zone, providing a clear range for retracement activity. The recovery phase showed a notable rejection from the 0.786 Fibonacci retracement level, a key zone that often marks strong continuation points for prevailing trends.
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‎Currently, price has slipped into consolidation as buyers attempt to hold ground. However, weakening momentum on the daily RSI indicates diminishing bullish strength. With sellers regaining control, the probability of a bearish continuation is rising, with price expected to breach the $1.100 demand level in the near term.

‎EIGENUSD Medium-Term Trend: Bearish

‎On the 4-hour timeframe, the bearish structure is more evident, reinforced by the formation of a descending trendline. Price is presently testing the trendline support, hinting at a possible short-term retracement.
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‎This minor rebound is likely to extend toward the trendline resistance before sellers resume dominance. Once the bearish momentum resumes, the likelihood of price breaking below the $1.100 demand zone increases significantly, reinforcing the broader bearish outlook.
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