Ethereum Name Service (ENS) Flips Long-Term Bearish Trend, Will the Rally Continue?

Ethereum Name Service [ENS] has flipped its long-term bearish trend and beaten a cluster of resistance levels around the $20-$22 region that has challenged the bulls since early August.

Ethereum Name Service (ENS) has finally flipped its long-term bearish trend after a cluster of resistance levels around the $20-$22 region challenged the bulls since early August.

However, a recent breakout saw this hurdle overcome, with the token’s price rallying by over 40% in the past week alone. Network activity also told an encouraging tale.

After a prolonged bearish spell, ENS has finally managed to flip a crucial resistance level. But where could the token be headed next?

ENS’ 90-day MVRV was positive after the strong recent gains. This opened the possibility for some profit-taking activity and a price dip. However, the transaction count and velocity were more bullish.

Their upward trajectory since late October was a sign of increased market activity. The transaction count measures the unique transactions occurring on the network in a day.

An increase in this metric is a sign of increased market participation. Velocity measures how often a token changes hands.

Increased prices, velocity, and transaction count mean that the token is traded more frequently and supports the idea of a healthy, active market.

Finally, the supply distribution by balance of addresses showed that the 1,000-1,000,000 ENS balance addresses had shed some of their holdings since October.

The 10,000-100,000 ENS balance addresses, on the other hand, had seen their holdings decrease.

However, the former cohort has begun to climb higher, showing some accumulation. Shrimp addresses with less than 10 ENS were also accumulating.

More importantly, large whales with 1 million or more ENS saw their share of the pie increase, a sign that whales were buying these tokens too.

ENS’ recent price action signaled a bullish bias, with a breakout from a key resistance level.

While this set the stage for further gains, especially with whale buying, a BTC-led market downturn could pull ENS below the $20 mark.

However, it is anticipated that the token can still trend higher, with its 78.6% Fibonacci level at $15.7 serving as a crucial support level.