Key Takeaways
Ethereum Name Service (ENS) shows promising technical developments. On daily and hourly charts, its price action closely follows Elliott Wave principles.
The larger timeframe highlights a potential impulsive wave in progress, while the lower timeframe emphasizes localized corrections and setups for the next rally.
This analysis delves into key observations, price predictions, and actionable levels.
In our price prediction for ENS made in June 2024, the price was in an uptrend of around $27.
This was expected to be the first sub-wave of the higher degree wave 3. After a correction stage, further upside was expected, with a target of $50 projected as the 1.618 Fibonacci extension level of wave 1.
In December 2024, the price reached that level, concluding its wave 3 and entering the development of its corrective wave 4, as projected.
On the daily chart, ENS appears to have completed a corrective Wave (iv) within a broader impulsive Elliott Wave structure.
Wave (iv) found strong support at $30.28 (0.786 retracement), aligning with the descending triangle’s lower boundary.
This correction is part of the consolidation phase before initiating Wave (v). The breakout above $35.42, the triangle’s resistance, indicates renewed bullish strength.
The Relative Strength Index (RSI) on the daily timeframe shows recovery but remains neutral, hinting at potential momentum for a sustained rally.
The immediate target is $41.96 (1.272 Fibonacci extension), with significant resistance at $50.28 (1.618 extension). Beyond this, $59.46 and $66.00 are critical for completing the impulsive structure.
The broader market context highlights a bullish trend supported by structural breakout and strong retracement levels. Any correction to $30.28 (0.786 Fibonacci retracement) could provide a reentry opportunity.
The hourly chart depicts the early stages of Wave (v), with sub-Wave (i) forming and a likely retracement to create Wave (ii).
The retracement could retest $35.42–$30.28, corresponding to the 1.0 and 0.786 retracement zones, offering ideal accumulation points for bullish traders.
Wave (iii) of Wave (v) is projected to extend toward $50.28, supported by the 1.618 Fibonacci extension.
Following a brief consolidation for Wave (iv), the final leg of Wave (v) could target $59.46 (2.0 extension) and possibly $66.00 (2.272 extension), aligning with long-term resistance levels.
RSI on the hourly chart is rising but far from overbought, supporting the continuation of upward momentum.
However, failure to sustain above $30.28 may invalidate the bullish scenario, opening the door for deeper corrections.