ENS targets $30 as the Ethereum ecosystem explodes

Ethereum Name Service (ENS) – a decentralized naming platform operating on the Ethereum blockchain (ETH) – has recorded an increase of over 8% at the time of writing on Wednesday, outperforming the overall bounce back of the crypto market as it achieved double-digit gains in the past 24 hours.

The impressive return of ETH surpassing the $3,100 mark has acted as a catalyst, driving the strong growth momentum of ENS – an indispensable part of the rapidly developing Ethereum ecosystem.

In addition, data from both the derivatives market and on-chain show a distinct optimistic sentiment. Open contracts (OI) surged while the amount of ENS on exchanges continuously declined – a signal indicating that investors are anticipating a sustainable price increase in the near future.

The open contracts of ENS increased by nearly 50%

According to data from CoinGlass, the open contract (OI) of ENS has surged by 48% in just 24 hours, reaching a milestone of 131.58 million USD. This strong upward momentum reflects new capital flowing into the crypto market, indicating increasing interest from traders in the ENS token.

Notably, the funding rate has also recorded a jump from 0.0028% to 0.0149% in the last 8 hours. This is a clear signal of optimistic sentiment from the bulls, as they are willing to pay fees to maintain long positions, in order to close the gap between prices in the swap market and the spot market.

ENS derivatives data | Source: CoinglassAt the same time, the bears are under significant pressure as the total value of Short positions liquidated in the past 24 hours reached $599,400 – many times higher than the $119,270 from the Long side. The long/short ratio currently stands at 1.0121, indicating that the number of Long orders is slightly higher and further reinforces the bullish momentum in the crypto market.

ENS supply on the exchange hits a record low

According to data from Santiment, the amount of ENS tokens circulating on exchanges has decreased to only 4.99 million – the lowest level since November 14. This trend indicates that the supply is gradually running out. In the context of increasing demand, the law of supply and demand suggests that this trend could continue to drive the price increase of ENS.

ENS supply on exchanges | Source: Santiment## ENS aims for the $30 mark thanks to strong upward momentum

On the daily timeframe, Ethereum Name Service (ENS) has just closed its fourth consecutive green candle on Wednesday, officially reclaiming the $26 mark after more than five months deeply below this threshold. The strong bounce back since early July has helped ENS increase by 41%, approaching the important resistance area at $30.29 – a price level that was last tested on February 3.

If ENS can close firmly above this resistance area, the uptrend may continue to extend, with the next targets being $34.51 – the peak price on 1/2, and then the highest level since the beginning of the year at $38.57.

Daily ENS/USDT Chart | Source: TradingViewTechnical signals are supporting the bulls. The 50-day EMA( is trending upwards and is about to cross above the 100-day EMA – a "bullish cross" pattern is often viewed by analysts as a confirmation signal for an upward trend.

The MACD indicator also supports the bullish trend as the MACD line and the signal line are expanding in the positive zone, while the histogram bars are above the 0 threshold, indicating that the bullish momentum is being firmly reinforced.

In addition, the relative strength index )RSI( is currently at 78 - in the overbought zone, reflecting that the buying pressure is clearly dominant.

However, if the current momentum is not maintained, ENS could completely reverse and adjust to the nearest support zone at $24.88 – corresponding to the closing level set on February 9.

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