The Ethereum Name Service (ENS) price has shown significant growth over the past two days, reaching a high of nearly $25 today. This surge in price has resulted in a breakout from long-term diagonal and horizontal resistance levels.
The ENS price had been following a long-term descending resistance trend line since January 2022, hitting a low of $6.65 in October 2023. However, the price has been on the rise, with a particularly accelerated increase in the past two weeks.
This week, the price saw a breakout from the descending resistance trend line that had been in place for 710 days, leading to a high of $24.96 and pushing the price to a horizontal resistance area.
Technical analysts have been using the Relative Strength Index (RSI) as a momentum indicator to gauge market conditions. With the RSI reading currently above 50 and showing an upward trend, it is signaling a bullish trend for the ENS price.
Looking at the technical analysis on the daily time frame, the ENS trend appears bullish, but there may be a local top in the near future according to wave count and RSI readings. The wave count suggests that ENS is in wave three of a five-wave upward movement, indicating potential for a significant extension.
The bearish divergence in the daily RSI also suggests that a price correction may be on the horizon, possibly leading to a 25% decrease to the 0.382 Fib retracement support level at $18. However, a close above $24 could trigger a 75% increase to the next resistance level at $40.
It’s important to note that while short-term predictions may be bearish, the overall outlook remains optimistic for ENS. Traders and investors should conduct thorough research and seek professional advice before making any financial decisions. Always stay informed and be aware of potential market changes.
