On June 25, the Ethereum Name Service (ENS) price dropped to $22.95 amid market stagnation. However, the price started to rise and eventually reached $25.13 early on June 26. This 8.82% price increase made ENS the top gainer among the top 100 cryptocurrencies. Despite the rise, market participants’ behavior indicates a more significant trend that could affect ENS’s value.
What’s Happening with ENS?
ENS investors do not seem convinced that the token price will continue to rise. Therefore, many have already placed sell orders. This decision is reflected in the Exchange-OnChain Market Depth. Exchange-OnChain Market Depth provides real-time trading activity on exchanges. The bid side shows the number of buy orders, while the sell side indicates the number of tokens that could create selling pressure on the price.
According to IntoTheBlock, investors seem ready to sell a total of 812,870 tokens at an average price of $25.19. The value of these tokens at this price would be $20.32 million. However, buy orders are insufficient due to only 399,800 tokens being ready to save the cryptocurrency from another downtrend. Considering the difference in sell and buy values, the ENS price may not contribute to its current gains.
Besides, the model shown by the total number of holders puts ENS at risk of falling below $24. According to Santiment data, the number of holders decreased from 66,300 on April 18 to 65,100 at the time of writing.
ENS Chart Analysis
Regarding the next price movement, the 4-hour chart shows that the correction that occurred between June 23-24 (marked with a red box) has been overcome. Although the price continues to rise, it faces resistance at $25.69. Failure to surpass the resistance level could send the ENS price back to $23.52.
Given the current conditions, the Average Directional Index (ADX) shows weakness for the uptrend. ADX is a technical indicator used to determine the strength of a trend, and typically readings of 25 or above indicate a strong directional movement. However, at the time of writing, the ADX reading was down to 21.13. If directional strength continues to decline, the ENS price will have no choice but to fall.
