Within the last 24 hours, Ethereum Name Service [ENS] has seen a significant surge, hitting a level not seen in two years. The altcoin skyrocketed from a low of $21.51 to a peak of $37.
As of the current moment, ENS is trading at $35.64, reflecting a remarkable 45.49% increase in the past day. Moreover, looking at its performance over the week and month, ENS has surged by 85.91% and 99.69% respectively.
The present market situation raises speculation on whether ENS is poised for further advancements or if the recent surge is purely based on speculation.
Can ENS Sustain its Bull Run?
Analysis from CryptoCrypto suggests that Ethereum Name Service is witnessing continuous upward momentum, propelled by a prevailing bullish sentiment.
For instance, ENS’s NVT Ratio (based on circulation) witnessed a decline over the past week, dropping from a weekly high of 188 to a low of 58. This decrease indicates that the altcoin’s on-chain activities are growing at a faster rate than its market capitalization, indicating increased utility and adoption.
This is further evidenced by a surge in daily active addresses. According to IntoTheBlock, ENS’s daily active addresses spiked to reach a 5-month peak of 1.69k.
The increase in active addresses coupled with a diminishing NVT ratio suggests that the price surge is underpinned by robust market fundamentals rather than mere speculation.
Furthermore, there has been a notable increase in large transactions for the altcoin, reaching a yearly high of 695. This surge implies active involvement from large investors, corroborating the observed uptrend in on-chain activities.
The heightened whale participation is also reflected in the upsurge of large holders’ inflow. A rise in such inflow indicates whale accumulation of the asset, showcasing market confidence as they anticipate further price gains.
Lastly, the open interest for the altcoin has surged to hit a 5-month high of $154 million. This rise suggests that investors are continuously initiating new positions, signifying their optimism in ENS’s future potential.
What Lies Ahead?
Therefore, these positive metrics imply that the surge in ENS is substantiated by strong market fundamentals rather than mere speculation.
Given the current scenario, a further uptrend seems likely. If the prevailing conditions persist, ENS may surge past the $40 mark and encounter notable resistance around $42.