The Awesome Oscillator was higher than it had been throughout 2024, showing extremely bullish momentum.
- ENS saw strong capital inflows. The momentum and short-term sentiment were weakening, and the price could see a pullback.
Ethereum Name Service [ENS] has rallied hard in the past ten days, gaining 110% and breaking past the local highs at $34.6. This level was flipped to support last week, and ENS bulls now sought to turn the $40 level into a demand zone.
ENS retests $38.7 as support and bounces higher
Source: ENS/USDT on TradingView
On the daily chart, the $38.4 and $49.8 were marked in orange. These were the levels that the Ethereum Name Service price oscillated between November and December 2021.
At press time, the 23.6% Fibonacci extension level was beaten.
The $40 zone has been flipped to support after the five-day battle, but it is possible that the price might retrace below $38 in the coming weeks.
As things stand, the CMF’s reading of +0.1 showed significant capital inflow to the ENS market.
The Awesome Oscillator was higher than it had been throughout 2024, showing extremely bullish momentum. The red bar on the histogram showed that this momentum was beginning to tire.
The Stochastic RSI formed a bearish crossover to signal a potential price dip. However, the daily market structure remained bullish. Therefore, it is expected that the price will consolidate between the $38-$42 region in the coming days.
Lukewarm speculative interest in December
Source: Coinalyze
While the Ethereum Name Service bulls breezed past the $40 level, the Open Interest was high and the spot CVD was trending upward.
Since then, the price saw a rejection from $46 twice, and the consolidation around the $40 level saw OI drop steadily.
More worryingly, the spot CVD also began to drift lower. This showed reduced demand in the spot market in the lower timeframes.
The liquidations showed that long positions were punished with each dip below $40. There was a cluster of liquidity around $39.2 that could attract ENS prices to it in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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