Ethereum Name Service (ENS) Surges 50% in 24 Hours: Here’s Why

Ethereum Name Service (ENS) Surges 50% in 24 Hours, Here's Why

Ethereum Name Service (ENS) tokens saw a dramatic 50% price increase over the last 24 hours. The token surged from a 24-hour low of $14.03 up to a high of $24.78 before stabilizing around the $23 range at press time.

This latest price surge comes after months of declining values for ENS. The token price had fallen under a long-term descending resistance trend line since January 2022. This steady decrease bottomed out in October 2022, with ENS hitting a low of $6.65. However, the token has been rebounding in value since then, greatly accelerating its upward trajectory over the past two weeks.

Source: CoinMarketCap

Why is ENS price up?

This week’s upward movement finally caused ENS to break out of the descending resistance trend line that had been suppressing its growth for 710 days. The breakout rallied ENS up to hit its 24-hour high of $24.78 earlier today, lifting it to test a key horizontal resistance level it has struggled to breach since 2021.

Noted crypto asset trader Scient shared his ENS trading analysis on Twitter following the breakout.

The trader stated that from the entry point, there is a consistent upward trajectory, and after three weeks, ENS experienced a remarkable surge of 150%. With a strategic approach, Scient plans to secure profits by taking a 50% profit at the $27.62 mark.

Do check out: Avalanche Sees Volatility After Hitting Annual High; Will AVAX Surge In 2024?

Key Drivers Behind the ENS Price Rally

  • Bullish run of the Ethereum (ETH) token after Bitcoin ETF approval, with ETH hitting $2,650.
  • Vitalik Buterin tweets praising ENS

ENS tokens help decentralize domain name services on the Ethereum network, making them crucial for supporting Web3 and dApp development. Their utility for enabling censorship-resistant websites and applications is being realized, driving demand.

Ultimately, sustained utility and locked token value will dictate the long-term price trends for ENS. If adoption continues to grow in Ethereum dApps and DeFi protocols, ENS has room to appreciate.

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