Over the last ten days, Ethereum Name Service [ENS] has witnessed a substantial rally, gaining 110% and surpassing the previous local highs at $34.6. The recent price action saw this level transition into a strong support zone, with ENS bulls now targeting the $40 level to establish it as a demand area.
ENS Tests $38.7 Support Level and Sees Upward Movement
Looking at the daily chart, notable levels at $38.4 and $49.8, marked in orange, formed significant support and resistance zones for the Ethereum Name Service price between November and December 2021.
Currently, the 23.6% Fibonacci extension level has been breached.
Despite successfully turning the $40 zone into support after a five-day struggle, there is a possibility of a retracement below $38 in the coming weeks.
Presently, the CMF indicator displays a reading of +0.1, indicating substantial capital inflow into the ENS market.
The Awesome Oscillator shows heightened bullish momentum, surpassing levels seen throughout 2024; however, the appearance of a red bar on the histogram suggests a potential slowdown in momentum.
The Stochastic RSI has formed a bearish crossover, signaling a potential price decline. Nevertheless, the overall daily market structure remains bullish, suggesting a consolidation phase within the $38-$42 range in the days ahead.
Limited Speculative Interest in December
Despite the successful breach of the $40 level by ENS bulls, high Open Interest and an upward trend in the spot CVD were noted.
Subsequent rejections from the $46 mark led to a consolidation phase around $40, resulting in a gradual decline in Open Interest.
Furthermore, a decline in the spot CVD indicated a decrease in demand within lower timeframe market segments.
Ongoing liquidations revealed that long positions faced consequences with each dip below $40, with a notable liquidity cluster around $39.2 likely to attract ENS prices in the near future.
Disclaimer: The provided information is not intended as financial, investment, or trading advice and represents the personal opinion of the author.