Ethereum Name Service (ENS) is known for making significant impacts in the market. Vitalik has occasionally mentioned it, causing its price to rise, and while the project struggles to stay above $26, the price has temporarily dipped below this level.
Ethereum Name Service Comments
In the last 10 days, ENS price has significantly risen, showing that over 90% of the supply is in profit. This indicates a market peak for ENS.
Market peaks generally occur when the total supply in profit exceeds 95%. However, for ENS, this threshold was 90%.
Historical data shows corrections occur when this threshold is breached. Currently, ENS is at 92%, suggesting a possible upcoming correction.
Given the high profitability in the market, the likelihood of holding profits may decrease. The Global In/Out of the Money (GIOM) indicator shows that nearly 5.56 million ENS, worth $144 million, could turn into loss positions.
What Will Be the ENS Price?
ENS is currently trading at $25.7, marking the third time this year it has fallen below the $26 support level. After the last attempt, it couldn’t stay above this level and dropped below $19.2. Given the current situation, a repeat of this process is possible.
If the altcoin fails to rise above $26, it may drop to $23 and then to $20.9 if it can’t hold this support. If investors rush to take profits, larger sell-offs could be triggered, pushing the price down to $19.2.
Despite these negative price expectations, a rebound from any of the existing supports could see the price surpass $26 and attempt to secure it. If successful, the bearish outlook will disappear, potentially leading to a new bullish trend.
