The recent price action of Ethereum Name Services (ENS) suggests that bears may push for another rejection, while a key metric discovered by AMBCrypto could help traders time a potential bullish breakout. ENS experienced a strong rally starting on June 12th, gaining 9.82% with the possibility of further increases.
However, the bulls might face challenges ahead as ENS approaches a resistance level that has remained undefeated throughout 2024. Will the fourth attempt to break this resistance be successful, or should bears prepare to enter short positions?
The price chart indicates that the $27.5-$28.5 zone has consistently acted as a resistance area this year. Previous rally attempts in January and March were met with failures, leading to retracements to lower levels. Despite these setbacks, the On-Balance Volume (OBV) has been trending upwards, suggesting a potential breakout in the near future.
Another positive sign for ENS is the growth in network activity, with an increase in daily active addresses and unique addresses created since mid-June. This rising adoption could drive demand for ENS tokens.
Investors should remain cautious about buying ENS at the current strong resistance zone. However, a break above the $27.5 region coupled with a decline in the MDIA metric could signal a bullish trend. It is essential to monitor these factors before making investment decisions.
Please note that the information provided in this article is based on the writer’s opinion and does not constitute financial, investment, or trading advice.
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