Ethereum
Will Ethereum Name Service stop at $27? What ENS investors should watch out for
- The ENS price action showed that the declines could force another rejection.
- AMBCrypto has found a metric that could be key for traders to anticipate a bullish breakout.
Ethereum Name Services [ENS] The ENS index has been on a strong rise since June 12 and has continued. At press time, the ENS index had gained 9.82% and could go higher.
The good times might not last for the bulls, as ENS has quickly approached an unbeaten resistance level throughout 2024. Will this fourth attempt be lucky, or should the bears prepare to take short positions?
Price action shows bulls may struggle to reach new highs
Source: ENS/USDT on TradingView
The $27.5-$28.5 area has been a persistent resistance zone throughout this year. The first rally in January saw prices pushed back to the 61.8% retracement level at $16.34.
However, the escape attempt that followed in early March also ended in failure.
The retracement then took the ENS to $10.67, and bulls fought through April and May to defend the 78.6% retracement level at $13.29.
All this time, OBV has been trending upward. The constant buying pressure could pay off this time and force a breakout.
Network growth is another positive sign
Source: Feeling
Since June 15, the network’s growth has seen an upward trend to mean hundreds of unique addresses created on the network. Daily active addresses also saw an upward trend.
Together, growing adoption could fuel demand.
The average age invested in dollars continued its upward trend. This showed that the network was becoming less active and old tokens were stuck to the same addresses.
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A decline in the MDIA metric could rejuvenate the market and trigger a breakout.
As things stand, bulls should be cautious before buying ENS in such a strong resistance zone. However, the $27.5 region is broken and the MDIA metric begins to trend downward, investors might want to bet bullishly.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and represents the opinion of the author only.