ENS gains 110% in 10 days, but pullback looms

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  • ENS saw strong capital inflows.
  • The momentum and short-term sentiment were weakening, and the price could see a pullback.

As a seasoned researcher who has witnessed the crypto market’s ups and downs over the years, I must admit that the recent surge of Ethereum Name Service (ENS) has caught my attention. The 110% rally in just ten days is certainly impressive, but as we all know, every bull run has its pullbacks.

In the last ten days, Ethereum Name Service (ENS) has experienced a significant surge, increasing by 110% and surpassing previous highs at $34.6. This peak was later transformed into a support level last week, and ENS enthusiasts are now aiming to make the $40 region a zone of increased demand.

ENS retests $38.7 as support and bounces higher

During the period from November to December 2021, the Ethereum Name Service’s price fluctuated around two key levels: $38.4 and $49.8, which were highlighted in orange on the daily chart.

At press time, the 23.6% Fibonacci extension level was beaten.

After a five-day struggle, the $40 area is now reinforced to hold the price. However, there’s a chance the price could dip below $38 in the forthcoming weeks.

As things stand, the CMF’s reading of +0.1 showed significant capital inflow to the ENS market.

2024 saw the Awesome Oscillator reach its highest levels yet, indicating exceptionally strong upward momentum. However, the red bar on the histogram suggested that this momentum might be starting to wane.

In simpler terms, the technical indicator known as Stochastic RSI has hinted at a possible decrease in price due to a bearish crossover. Yet, the overall market trend remains optimistic (bullish). Thus, it’s anticipated that prices will stabilize within the range of $38 to $42 for the upcoming days.

Lukewarm speculative interest in December

As Ethereum Name Service prices soared beyond $40, open interest remained significant, and the trend for the CVD (Current Value Domain) was on the rise.

After that, the price attempted to break through $46 on two occasions but failed, leading to a gradual decrease in Open Interest (OI) as it hovered around the $40 range instead.

Read Ethereum Name Service’s [ENS] Price Prediction 2024-25

Concerningly, the rate of Cardiovascular Disease (CVD) started to drop as well, indicating a decline in demand in the spot market over shorter periods.

In simpler terms, as the price dipped below $40, long positions suffered losses. Notably, there seems to be a concentration of market liquidity near $39.2. This area might draw Ethereum Name Service (ENS) prices towards it in the upcoming days.

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2024-12-06 09:11