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Ethereum Name Service (ENS) Faces Resistance as Descending Channel Persists

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Corrective wave (iv) nearing completion within the descending wedge.
  • Wave (v) targets $50.28 and $59.46 if momentum sustains.
  • RSI neutral, room for breakout above $35.42 resistance.

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.

ENS Price Prediction

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. 

ENS july taget
ENSUSD June 2024 projection | Credit: Nikola Lazic/TradingView 

In December 2024, the price reached that level, concluding its wave 3 and entering the development of its corrective wave 4, as projected. 

ENS Price Analysis

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.

ENS price analysis
ENSUSD in a descending triangle | Credit: Nikola Lazic/TradingView 

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.

ENS Price Prediction

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.

ENS price prediction
ENSUSD breakout expected | Credit: Nikola Lazic/TradingView 

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.

Key Levels to Watch

  • Immediate Resistance: $35.42 (current breakout zone).
  • Secondary Resistance: $41.96 (1.272 Fibonacci extension).
  • Major Targets: $50.28 (1.618 extension), $59.46 (2.0 extension), $66.00 (2.272 extension).
  • Immediate Support: $35.42 (1.0 Fibonacci retracement).
  • Key Support: $30.28 (0.786 Fibonacci retracement).
  • Invalidation Zone: Below $27.15, indicating a breakdown of the bullish structure.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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