Is Ethereum Enumeration Service (ENS) bound for more failure?
Ethereum Name Service (ENS) price is close to breaking the 2024 highs, but broader market signals have pulled it lower before it does.
However, investors have not supported the altcoin much, they are looking to sell.
Ethereum Name Service deals with profits
The value of ENS has increased and with it the possibility of selling in the hands of investors. The unexpected rally was sparked by broad market signals and a favorable position in the Ethereum ETF. ENS has benefited from it, the token is the name of Ethereum.
However, this resulted in the property being overvalued as reflected in the Market Value to Real Value (MVRV) ratio. Ethereum Name Service's 30-day MVRV is 25.7%, which indicates a profit and could trigger a selloff.
Historically, ENS corrections are performed in the 7% to 21% MVRV range, which is the danger zone.
Therefore, ENS owners can sell their property for a profit.
This concept is proven to increase active deposits on the network. Active deposits measure the unique addresses of users who have been moving their holdings from wallet to exchange wallet.
Read more: Ethereum Name Service (ENS): Everything you need to know
Over the past few days, as the price of ENS rose, investors began moving their holdings in large quantities. This shows that the owners of ENS are ready to sell for a profit, which can be boring for the price action.
ENS Price Forecast: Further increases are unlikely.
The price of ENS, trading at $23.4 at the time of writing, has broken the resistance at $23.15, but if it does not maintain this increase, this level may not be considered as support. This is crucial to realize that it has increased to form new 2024 highs above $26.
However, considering that investors are very bearish on growth, the altcoin will not find $23.15 as a support for the most part. Therefore, ENS may follow a decline to $20.91.
Read More: Ethereum Name Service (ENS) Price Prediction 2024/2025/2030
However, if the investors refrain from selling, the ENS may test the critical support level. This will stimulate optimism among ENS holders, which will trigger a recovery that could lead to a new 2024 high, undermining the value of the hypothetical outcome.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
