ENS Labs (ENS token) is considering the possibility of switching to the L2 network. For now, let us remind you that the ENS protocol is based on Ethereum.
The ENSv2 proposal has already been put forward for discussion, the arguments for voting in favor are standard - reducing gas fees and increasing transaction speeds.
Let's see how#ENSis doing.
Our March spot deal on#ENSis one of those that deserves a punch. The initial setup correctly indicated the conditions for its cancellation, but they themselves did not comply with it and did not follow the stop, although they intended to. A mistake that is still somehow acceptable in a bull market (we pay with lost time and missed optimal entry points), but definitely not acceptable in a bear market (not every token after a bear market will even return to the entry price).
If we look at the waves, in our setup the fifth wave of growth gave a minimal overshoot to the third and did not live up to expectations, but the ABC correction absorbed almost the entire growth of January-March. The price eventually reached trend support from October 2023 (giving another reason to monitor such supports and hold orders there). It dropped far below the entry point of $24.67, to $10.5.
Some good news about the deal:
- The bet on the asset as such is correct. ENS pumped up the topic of approving a spot Ethereum ETF. And only since May 20, showing a price increase of +100%. All drawdown has already been absorbed. But for us now it’s only +4%, at the high it was +15%.
- We believe that the asset is currently only in the fourth wave of growth, there will be a fifth one yet. The asset probably completed the third yesterday, showing a signal from the trend reversal indicator.
We expect that in the end the price will come to at least the upward trend that has been going on since January 14, 2023 (currently at $35.68). And most likely - in the area of the volume level of $39.36 and even higher. Plus or minus there we will monitor reversal formations.
That is, the goals are the same. But through a severe drawdown and with a huge loss of profit if we had exited following the stop order. The correct thing, as history has shown, was to exit at the initial stop of the setup at -12.69%. And then from the “Cheap” signal on the day, take the movement by +100%. We didn’t follow the stop, expecting manipulation and continued growth to cover the imbalance of the decline in January 2022. But in the end, “The stingy one either pays twice,” or, as in this case, significantly loses profit 🤷♂️
We are now waiting for the asset to undergo a correction in the fourth wave to the volumetric and mirror level of $22.30. Perhaps, by the time of the test, the EMA of the 50 day TF will also arrive there. And then we expect growth above $30.
There is, however, an unpleasant option that the ABC correction is still in the process of formation. Then the entire decline from March 5 to April 13 was wave A, the growth from April 13 to May 28 was wave B. And then we will face a strong dive in wave C. But there are reasons for such a decline in the asset and everything related to Ethereum - not yet expected. Therefore, we leave the option indicated on the chart as a priority.
