Ethereum Name Service (ENS) has skyrocketed by more than 33% in the last 24 hours and is now counted as one of the best gainers of the cryptocurrency world today. That has propelled ENS crypto prices above previous highs, creating interest and excitement amongst investors.
Today, ENS’s performance is not just a normal market fluctuation. It is a large rally to break past its previous resistance points.
ENS price skyrocketed to $35, which market watchers and participants have called a bullish derivation for ENS crypto to rise further in the future.
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Factors Driving the Surge
Several reasons account for the large increase in ENS prices. Ethereum (the blockchain on which the Ethereum name service resides), has attracted a very high market sentiment.
As a related asset, ENS crypto has benefited as analysts and investors speculate for new all-time high prices for Ethereum. Additionally, the recent price movement has been triggered by important whale activity.
A big moment came when a long-term holder made 50,000 ENS tokens (around $1.66 million) appear on Binance. After being inactive for 5 months. Its objective with this move was to make $968,000 profit.
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Whale Transactions and Market Influence
At the start of 2022, the investor held 322,739 ENS tokens at an average price of about $13.86 per token.
They’ve sold 272,739 ENS crypto tokens since January 2024, at an average price of about $20.75. This investor now owns 50,000 ENS tokens, leaving with a still impressive $2.9 million, or 65% profit.
This highlighted just how much their large holders can affect the price of the market. Often impulsive in their actions, the movements from these reactions to their actions have large price impacts, which cause significant changes in market dynamics significantly.
In this case, such spikes usually indicate strong buying pressure and a bullish market expected, that might go on further.
The market experts suggest that with ENS crypto surpassing the $35 mark recently, it could be the start of a continuation move towards a much higher price target of $80.
According to this projection based on the market’s current momentum and volume, this project could see a further upside.
ENS Crypto Technical Analysis
As per in-depth analysis, we see that the chart shows a significant upward trend. The large green candlesticks have had this strong bullish momentum, although the recent sharp jump to the right-hand part of the chart.
The price is above all three SMAs, which means it’s bullish. The SMAs are all sequential here also (in increasing order 50 < 100 < 200), adding to the bullishness we are seeing here.
On the 4-hour chart the 50-SMA has just crossed above the 100-SMA. It is considered a ‘golden cross’ and a very strong bullish signal, and just above the 200-SMA.
However, the immediate resistance level at around $36.70 seems to have recently (broken) the high. The levels at which the SMAs have aligned would act as support levels if the price retraces to $21.90, $19.84, and $18.54.
In turn, we also find that the Money Flow Index (MFI) is presented at the bottom of the chart with a current value of 88.12 meaning very high buying pressure.
This is very close to the overbought territory (usually >80), which makes this asset look as if it might be getting overvalued in the short term.
This means that it might therefore see a possible pullback or consolidation. The fact that the price rise appears to coincide with a large increase in volume ticks additional checks in the box for this being a legitimate bullish trend. During an uptrend, higher volume is intended to demonstrate more interest and buying activity.
