EigenLayer (EIGEN/USDT) Struggles to Regain Bullish Momentum

The market for EigenLayer against the Tether has shown signs of renewed interest amidst difficulty in maintaining momentum. However, the Guppy Multiple Moving Averages (GMMAs) signal a prolonged downtrend, as the bearish traders dominate.

Recently, EIGEN/USDT has experienced strong selling pressure with several failed attempts at high resistance levels. The position of the green EMAs and their spread below the red EMAs signals the market may be trending South despite the current 1.90% gains. However, the oscillator suggests traders can expect a short-term recovery soon.

Currently, EigenLayer is trading at $2.628 with over 6 million traded volume.

Technical Indicators

Major Resistance Levels: $2.853, $3.116, and $3.345

Major Support Levels: $2.537, $2.268, and $2.000

EigenLayer Technical Analysis

The analysis of EigenLayer against Tether on a daily timeframe shows that the pair operates at a critical zone. Despite the recent uptick in price, the pair is struggling in sustaining bullish momentum, as the overall sentiment as indicated by the GMMAs remains bearish.

On the other hand, the Stochastic RSI signals a rebound in the near term as the lines read extreme oversold values. To this end, an increase in volume and price breakout above $2.853 in the nearest term would indicate a bullish reversal; otherwise, a break below $2.537 would signal more downside movement.

EIGEN/USDT Analysis: What’s Next?

On the 4-hour chart, EIGEN/USDT shows price is dipping, reflecting a 2.12% decline over the previous trading session, as the market slopes downward.

However, the price seems to have retraced below $2.669, but the overbought condition of the Stochastic oscillator and the volume of trade suggest the pair might face another wave of selling pressure soon unless strong buying momentum emerges.

To this end, EIGEN may retest $2.574 or lower in the near term, unless stronger bullish pressure surfaces.

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