PayPal and Venmo Integrate ENS Domains, Price Forms Bullish Pattern

Key Takeaways

• ENS Labs announced a partnership with Venmo and PayPal.
• The Ethereum Name Service (ENS) price reacted to the news positively.
• Can ENS begin a rally and finish the year on a strong note?

The Ethereum Name Service (ENS) price has fallen since its yearly high in July but seemingly regained its footing in August, creating a higher low. Following the announcement, the price witnessed a 6% increase. Therefore, the existing bullish pattern remains intact.

Can ENS price complete this pattern and break out, and how much longer will it increase if it does?

Ethereum Name Service Announces Key Collaboration

On Sept. 10, ENS announced  that it had partnered with PayPal and Venmo to integrate ENS domains into its payment solutions.

From now on, users can utilize ENS names when transferring cryptocurrencies, reducing the risk of mistakenly transferring funds to the wrong address. Users can also save and recall ENS names for even faster transfers.

Initially, the integration will only be available to U.S. users.

Cryptocurrency enthusiasts are excited  about the news since PayPal has already launched its PYUSD stablecoin, which has a market cap of over $1 billion, and this is another foray into bringing Web2 and Web3 together.

Interestingly, the price of ENS only saw a slight uptick following the positive news.

ENS Price Creates Double Bottom

The daily price chart shows that ENS has increased alongside an ascending support trend line since October 2023. The trend line has been validated numerous times, more recently on Sept. 6, 2024. This bounce created the fifth higher low (white icon) since the trend line began.

However, the ENS price is following a descending resistance trend line existing since the yearly high on July 1.

Even though the price still trades below resistance, technical indicators and the price action both suggest the price will break out. The movement since Aug. 5 resembles a double bottom, considered a bullish pattern.

The fact that the bottom is combined with a bullish divergence in the daily Relative Strength Index (RSI) and MACD (green) support this outlook.

If the ENS price breaks out, the next resistance will be at $26.90. The 0.618 Fibonacci retracement resistance level and a horizontal resistance area create this target.

On the other hand, breaking down from the ascending support trend line will invalidate the bullish outlook. In that case, ENS could decline toward $9.50.

Positive End to 2024

Even though ENS saw a minimal reaction to the news of integration with PayPal and Venmo, the price movement is positive. If the double bottom pattern materializes, ENS can break out from its resistance trend line and reach the $26.90 resistance area.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

See more

[email protected]