‎EIGENUSD Rallies from $1.020 Demand Zone Facing Potential Reversal at Trendline Resistance

‎Eigen Layer Market Analysis – July 21

‎EIGENUSD rallies from the $1.020 demand zone, but rising into key resistance suggests a potential reversal as the broader bearish trend remains intact.

‎EIGENUSD Key Levels

‎Support Levels: $1.020, $0.180
‎Resistance Levels: $2.180, $3.260

‎EIGENUSD Long-Term Trend: Bearish

‎EIGENUSD has been in a prolonged bearish trend since the start of 2025, following a decisive bearish break of structure that set the tone for continued downside. The selloff remained uninterrupted for months, with no significant bullish retracement, as price plunged lower in a steep descent.
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‎In April 2025, price reached the $1.020 demand level—a major low for the year. This zone provided strong support, halting further decline and initiating a temporary bullish phase. The resulting rally lifted price toward the $2.180 supply level. However, despite this bullish correction, the larger structure remains bearish until price decisively breaks the overarching trendline resistance.
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‎The daily Relative Strength Index (RSI) now approaches the overbought zone, signaling a possible loss of bullish momentum. For the broader bearish trend to resume, price would need to break below the current bullish trendline, invalidating the short-term bullish structure.

‎EIGENUSD Medium-Term Trend: Bullish

‎On the 4-hour timeframe, EIGENUSD is showing signs of a short-term bullish continuation as it moves away from trendline support. However, price is currently reacting to a well-respected trendline resistance, and the 4-hour RSI is firmly in the overbought territory.
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‎This suggests a bearish retracement may occur soon, likely driving the price back toward the 4-hour trendline support. Such a move would be seen as a healthy correction within the ongoing bullish leg, with potential for further upside once demand is reestablished.

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