Ethereum Name Service (ENS) Price Analysis
Ethereum Name Service (ENS) has been quite volatile over the past few trading sessions.
Against this backdrop, the leading domain name service provider has seen a significant drop in domain name registrations in the second quarter of this year.
ENS derivatives have also seen a drop. A drop in open interest indicates that traders are closing existing positions and not opening new ones. A drop in open interest is often interpreted as a bearish signal and is often accompanied by a drop in the value of the token.
The drop in open interest and the drop in domain name registrations coincided with a significant drop in the value of ENS.
ENS has fallen 10% over the past week and despite a strong rebound in the current session, the overall market sentiment remains bearish. ENS fell a staggering 18.50% on Wednesday, falling below its 20-day moving average to $25.18.
On Thursday, ENS continued to fall, falling more than 10% and falling below its 50-day moving average to close at $20.55.
ENS experienced significant volatility on Friday, with bears attempting to push the price below $20, while bulls defended this level and tried to push the price higher. ENS finally closed at $22.85, up 1.32%.
As buyers bought ENS at lower prices, the cryptocurrency surged on Saturday, rising 14.30% and breaking above the 50-day and 20-day moving averages to close at $26.11.
However, it fell back on Sunday, falling 10.60% to $23.45. The week started well for ENS, which rose more than 15% on Monday and rose back above the 20-day and 50-day moving averages to close at $26.99.
In the current trading session, ENS is trading at $27.81, with buyers trying to push the price to $30. Guanzhu Public Account: Xiye Miao, Mianfei Jiaqun.
However, as can be seen from the chart, sellers are aggressively defending $30, pushing the price down from the high of $32. ENS faces strong resistance at $30 and support at the 20-day and 50-day MAs.
If the price breaks below these levels, we could see a drop to $20.
