- ENS saw a strong capital inflow.
- Momentum and short-term sentiment weakened and the price could see a pullback.
Ethereum name service [ENS] has rallied hard over the past ten days, gaining 110% and breaking local highs at $34.6. This level was reversed into support last week, and ENS bulls were now looking to convert the $40 level into a demand zone.
ENS retests $38.7 as support and bounces higher
Source: ENS/USDT on TradingView
On the daily chart, $38.4 and $49.8 were highlighted in orange. These were the levels at which the Ethereum Name Service price fluctuated between November and December 2021.
At the time of writing, the 23.6% Fibonacci extension level was beaten.
The $40 zone has turned to support after the five-day battle, but it is possible that the price will fall back below $38 in the coming weeks.
As things stand now, the CMF value of +0.1 indicates significant capital inflows into the ENS market.
The Awesome Oscillator was higher than 2024 and showed extremely bullish momentum. The red bar on the histogram showed that this momentum was starting to decline.
The Stochastic RSI formed a bearish crossover to indicate a potential price decline. However, the daily market structure remained bullish. Therefore, the price is expected to consolidate between the $38-$42 region in the coming days.
Lukewarm speculative interest in December
As the Ethereum Name Service bulls flew past the $40 level, Open Interest was high and spot CVD was on an upward trend.
Since then, the price has declined twice from $46, and consolidation around the $40 level has seen the OI steadily decline.
Read Ethereum Name Services’s [ENS] Price forecast 2024-25
More worryingly, the spot CVD also started to trend lower. This showed reduced spot market demand in the lower time frames.
The liquidations showed that long positions were penalized with every dip below $40. There was one cluster of liquidity around $39.2, which could pick up ENS prices in the coming days.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
