- ENS was one of the monthly best performers despite broader sell-offs in the market.
However, ENS hit a key 2024 supply zone that could damp further bullish swings.
As an analyst with a background in traditional financial markets and experience in the crypto space, I find the recent performance of Ethereum Name Service (ENS) particularly intriguing. The altcoin defied the broader market sell-offs and managed to secure double-digit gains during the May and June market retracement.
In spite of the general market downturn in May and June, certain standout performers managed double-digit percentage gains. One such exceptional gainer was Ethereum Name Service (ENS).
As of press time, the altcoin was up +30% on a monthly basis, per CoinMarketCap data.
Did the SEC boost ENS?
It’s worth noting that a significant portion of Ethereum’s [ETH] monthly growth occurred during this past week, coinciding with lessened regulatory scrutiny on its ecosystem.
Earlier this week, the US Securities and Exchange Commission (SEC) ended its probe into the second-largest blockchain network.
As a financial analyst, I’ve noticed that the regulatory climate has become clearer recently, leading to significant growth for ENS coin. Specifically, there were impressive gains of approximately 11% and 6% in intraday trading sessions on the 18th and 19th of June, respectively.
According to Santiment’s analysis, there was a significant increase in user activity during the early stages of the pump, signified by a rise in the number of daily active addresses.
The combined feeling towards the altcoin became more favorable, with a rise in positive sentiment, suggesting a bullish attitude among investors.
On the higher timeframe charts, the altcoin reached a commonly encountered resistance level, which might postpone any potential price increase. This pause could be more pronounced if coin holders decide to sell their profits around the $28 mark.
On the daily chart, the ENS cryptocurrency reached a point of resistance where sellers were prevalent, known as a supply zone. Additionally, an order block, indicating significant bearish activity, was established early in 2022. This supply zone has hindered ENS from advancing beyond $28 in the first half of 2024 due to the presence of substantial selling pressure.
If the pattern from 2024 were to recur, it’s possible that Ethereum Name Service (ENS) may head back toward its 50-day Exponential Moving Average (EMA), which is depicted in blue on the chart.
Realistic or not, here’s ENS’ market cap in BTC’s terms
As an analyst, I’ve observed that while the altcoin has shown significant gains, there is still potential for further growth. The RSI, which measures the strength of recent price action, hasn’t yet reached the overbought territory. However, it’s essential to note that the supply zone needs to be breached if bulls aiming for ENS are to push the price towards the next resistance level at $40.
As a crypto investor, I’m keeping a close eye on two potential developments that could significantly impact the price of Ethereum Name Service (ENS). Firstly, I’m excited about the upcoming launch of the US spot Ethereum [ETH] Exchange-Traded Fund (ETF), which could increase institutional investment in ETH and potentially drive up demand for ENS. Secondly, I’m closely monitoring Bitcoin‘s [BTC] extended recovery, as a strong Bitcoin market can often lead to a positive ripple effect on the Ethereum ecosystem and its related tokens like ENS.
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2024-06-20 23:03