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Ethereum Name Service Suddenly Spikes by 21%, Here's Main Reason

Fri, 10/14/2022 - 12:28
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Arman Shirinyan
Project does not seem to care about current situation on market
Ethereum Name Service Suddenly Spikes by 21%, Here's Main Reason
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The price of the token is tailored to one of the fastest growing projects on the cryptocurrency market, which has suddenly spiked by more than 21% in the last 24 hours, making it the most profitable asset in the top 100 of the biggest digital assets in terms of capitalization in the world.

According to the official social media accounts of the project, no fundamental updates or events related to the project have occurred in the past and are not planned for the future, which makes the reasoning behind the strong growth purely speculative.

ENS opposes trends on market

Despite the current state of the cryptocurrency market, in the last 100 days ENS has been showing nothing but positive price performance, gaining more than 140% to its value since reaching this year's bottom in June.

ENS Domain
Source: TradingView

The asset successfully broke every existing technical resistance on the chart and is now showing all signs of a trend reversal: the 50 and 200 day moving averages are about to cross, the trading volume switches to ascending and the Relative Strength Index is moving in the bullish zone.

ENS is moving in a firm uptrend with the trend's support located at around $13.8. Despite strong performance in the last 24 hours, the asset will most likely face an expected correction, as the selling pressure usually spikes in accordance with the price.

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The holder distribution on ENS shows a large spike around the $20 price threshold, which will most likely become the point of a short-term reversal on the asset, and traders tend to sell assets at a loss at their entry point to break even and close problematic positions.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.