Ethereum Name Service (ENS) Breaks Out of 3-Month Downtrend — Path to $20 Still Clouded

Key Takeaways

• ENS broke out of a prolonged bearish trend, bouncing from a low of $12.55, but faces resistance.
• IntoTheBlock’s data shows a major supply zone at $17.30, where ENS holders may hinder the rally.
• If the bearish indicators persist, ENS could fall to $11.89, but renewed demand could drive it higher.

ENS, the native token of Ethereum Name Service, has bounced back above $15 after a rough 12-week slide that began in late January.

While ENS has broken out of that bearish pattern, several indicators suggest it is not yet out of the woods.

Unless these signals begin to turn more favorable, the rebound could lose steam, raising questions about whether this rally has real legs or is just a temporary bounce.

ENS Breaks Bearish Trend

After plunging from a high of $35.60 to a low of $12.55 over a three-month downtrend, ENS price has finally broken free.

Over the weekend, intense buying pressure pushed the altcoin out of its bearish pattern. According to the daily chart, ENS not only exited the falling trendline but also managed to hold above it, signaling a potential trend reversal.

Adding to the bullish case, the Relative Strength Index (RSI) climbed higher. The RSI measures momentum using the speed and size of price changes.

As of this writing, the indicator has risen above the 50.00 midpoint, indicating bullish momentum. Despite that, ENS price remains below the Ichimoku Cloud.

The Ichimoku Cloud primarily spots support and resistance. When the cloud is below the price, it indicates support.

But in this case, the cloud is above ENS, indicating that the token will likely face stronger resistance at higher levels.

Rally Threatened

From an on-chain perspective, CCN examined the In/Out of Money Around Price (IOMAP). The IOMAP reveals where holders bought their coins and whether they are currently in profit (“in the money”) or at a loss (“out of the money”) based on the current price.

It also tells where support and resistance exist. Large green bubbles below the price indicate a strong demand zone (support).

However, large red bubbles above the price equal the supply region where selling pressure is likely.

Currently, the main resistance is $17.30, and over 1,000 addresses hold 1.34 million ENS. This zone could pose a serious hurdle.

More importantly, the volume of ENS held “out of the money” is heavier than in the support range between $12.89 and $15.14. As a result, ENS may face a pullback that could prevent a quick climb toward the $20 mark.

ENS Price Analysis: Altcoin to Face Fresh Pressure

In line with the thesis above, the ENS/USD chart shows that the Cumulative Volume Delta (CVD) is negative. This negative reading indicates that buying pressure is fading, and sellers are taking over.

If sustained, ENS price risks falling below the descending trendline it recently broke above. Should the trend remain the same, sellers might tug ENS back, and the value could drop to $11.89.

Alternatively, a rise in buying pressure could invalidate this prediction. In that scenario, ENS price might rise to $21.10 at the 0.236 Fibonacci level.