The Ethereum Name Service (ENS) cryptocurrency has rallied strongly in recent days. However, the ENS token has since pared back some gains amid profit-taking.
ENS entered 2024, changing hands between $9.32 and $10.48 as volatility remained muted. However, a breakout in late January saw prices leap over 40% briefly before stabilizing. Additional upside followed, with ENS consolidating between $11.74 and $15.74 for about a week.
The big surge came after the SEC greenlit a Bitcoin spot ETF, sending cryptocurrencies soaring across the board. ENS prices skyrocketed in just two days following the announcement.
But that vertical parabolic advance was unsustainable. After peaking around $26, ENS pulled back 30% as traders took profits. Support eventually emerged around $20, sparking a bounce back above $22.
Ethereum Name Service surges back after the GoDaddy partnership
Ethereum Name Service has traded sideways in a range of $15 to $21 over recent days. The token currently changes hands near $22 at press time.
That has left analysts questioning ENS valuations after the recent pump. The relative strength index (RSI) indicator surged into overbought territory over 90 during the peak, signaling extremely inflated prices. And moving averages continue to hold a bullish bias, indicating further upside is still possible if support holds.
Traders are keenly watching the current trading range between $15 and $22 to see which way the next breakout develops. Alternatively, a drop below the crucial floor at $15.74 would spell trouble for the ENS uptrend. That would have bearish traders eyeing downside targets at $18 and even $15 if the technical correction accelerates.
As a smaller market-capitalization crypto asset subject to speculation, ENS still faces plenty of long-term uncertainty. Its price trajectory ultimately depends on whether the recent bullish momentum tempers or reignites in the months ahead. For now, traders have turned cautiously neutral following the latest pullback.
