Why Ethereum Name Service (ENS) Price Won't Reach 2024 High 🚫📈

Ethereum Name Service Price Surge Sparks Selling Pressure 📈📉

The Ethereum Name Service (ENS) nearly reached its 2024 highs as market cues propelled its price upward. However, the surge also led to increased selling pressure from investors who are looking to capitalize on profits. Here’s a breakdown of the recent price action and what it means for ENS holders:

Ethereum Name Service Sees Gains

– ENS price experienced a significant surge due to broader market trends and the approval of the spot Ethereum ETF.
– The rally was unexpected but benefitted ENS, given its association with Ethereum.
– However, the rapid price increase led to overvaluation, as indicated by the Market Value to Realized Value (MVRV) ratio.
– The 30-day MVRV of 25.7% suggests potential selling pressure as investors aim to lock in profits.
– Traditionally, corrections in ENS occur when the MVRV ratio falls within the 7% to 21% range, highlighting a potential risk zone.
– This could prompt existing ENS holders to consider selling their holdings to capitalize on gains.

ENS Price Prediction: Further Rise Unlikely

– The ENS price breached a key resistance level at $23.15, reaching $23.4.
– Failure to maintain this level could prevent a test of new 2024 highs above $26.
– With investors expressing bearish sentiments on growth, securing $23.15 as support may prove challenging.
– A potential downside target could be $20.91 if the price retraces.
– Sustained selling pressure might hinder further price appreciation for ENS in the short term.
– However, a shift in sentiment could lead to a recovery and a renewed upward momentum for the token.

Hot Take: 🌶️🚀

In conclusion, the recent surge in the Ethereum Name Service price has triggered selling pressure from investors aiming to capitalize on profits. While the price surge was driven by broader market trends and ETF approval, overvaluation indicators suggest a potential correction. ENS holders should monitor key support levels closely to gauge potential price movements and make informed decisions based on market conditions.