The Ethereum Name Service (ENS) has surged dramatically over the past 48 hours, climbing nearly 40% to reach a high of $24.96—its most significant upward momentum in over two years. This rally marks a pivotal technical breakout and has reignited investor interest in decentralized identity solutions within the Web3 ecosystem.
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ENS Breaks Key Resistance After 710 Days
Since January 2022, ENS had been trading under a long-term descending resistance trend line—a bearish pattern that suppressed price action for 710 consecutive days. During this period, the token bottomed out at $6.65 in October 2023, reflecting broader market fatigue and declining NFT activity.
However, sentiment began shifting in late 2024, with steady accumulation leading into early 2025. Over the past two weeks, buying pressure intensified, culminating in a decisive breakout above the multi-year trend line this week. The surge pushed ENS/USDT to $24.96, testing a critical horizontal resistance zone near $25.
This level has historical significance—it previously acted as strong resistance in 2021 and now serves as a psychological benchmark for traders assessing the sustainability of the current rally.
Bullish Momentum Confirmed by RSI
One of the most reliable tools for measuring market momentum is the Relative Strength Index (RSI). On the weekly chart, ENS’s RSI has crossed above 50 and continues to climb, signaling that bullish forces now dominate the market.
An RSI above 50 indicates that upward momentum is strengthening and that buyers are in control. Combined with the breakout from a long-standing downtrend, this reinforces the argument for a structural shift in market sentiment.
Moreover, volume patterns during the breakout were robust, suggesting institutional or whale participation rather than retail-driven speculation.
Elliott Wave Analysis: Are We in Wave Three?
From a technical perspective, many analysts are applying Elliott Wave theory to assess the potential trajectory of ENS. According to this framework, ENS appears to be in Wave Three of a five-wave impulse pattern—a phase historically known for powerful, extended rallies.
Notably, Wave Three has already extended to 4.61 times the length of Wave One, which is typical of strong bullish impulses in crypto assets. This suggests that even after a short-term pullback, further upside could follow as momentum traders enter positions.
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Warning Signs: Divergence and Resistance
Despite the bullish structure, there are cautionary signals on the daily chart. A bearish RSI divergence has emerged—meaning price made a higher high, but RSI failed to confirm it with a corresponding peak. This often precedes short-term corrections.
Additionally, ENS is currently trading near a well-established horizontal resistance area around $25. Historically, such zones attract profit-taking, especially after rapid advances.
Given these factors, a pullback toward the 0.382 Fibonacci retracement level at $18 is plausible. Such a correction would be healthy, allowing for consolidation before any further upward move.
Can ENS Reach $50?
The big question on investors’ minds: Is a move to $50 achievable?
While aggressive, a $50 target isn’t implausible under favorable conditions. If ENS closes decisively above $24 on the daily candle, it could unlock a **75% rally toward $40**—the next major resistance level. From there, sustained adoption and ecosystem growth could pave the way toward $50.
But price alone doesn’t tell the full story. To understand ENS’s long-term potential, we must examine its utility and adoption trends.
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Why Is ENS Gaining Traction Now?
Several fundamental drivers are fueling renewed interest in ENS:
- Growth in Web3 Identity Use Cases: As more platforms adopt decentralized login systems (like Ethereum-based wallets), human-readable addresses provided by ENS become increasingly valuable.
- Increased NFT Integration: ENS domains are often used as profile pictures and digital badges across social platforms like Farcaster and Lens Protocol.
- Speculative Demand Ahead of Potential ETF Hype: Following comments from prominent traders joking about an “ENS ETF,” speculative interest spiked—mirroring past narratives seen with other blue-chip tokens.
Furthermore, Vitalik Buterin’s continued public support for ENS as a cornerstone of Web3 infrastructure adds credibility and visibility.
Frequently Asked Questions (FAQ)
Q: What is the Ethereum Name Service (ENS)?
A: ENS is a decentralized system that translates complex Ethereum wallet addresses into human-readable names (e.g., alice.eth). It operates on the Ethereum blockchain and enhances usability in Web3 applications.
Q: Why did ENS price go up recently?
A: The surge was driven by a technical breakout from a 710-day downtrend, strong volume, bullish RSI momentum, and growing interest in decentralized identity solutions within the crypto ecosystem.
Q: Is ENS a good long-term investment?
A: While short-term volatility exists, ENS has strong fundamentals due to its role in simplifying blockchain interactions. Long-term value depends on adoption across wallets, dApps, and social layers.
Q: What is the next price target for ENS?
A: If ENS sustains above $24, the next target is $40—a 75% increase. A break above $40 could open the path to $50, though short-term pullbacks to $18 are possible.
Q: How does Elliott Wave theory apply to ENS?
A: Analysts believe ENS is in Wave Three of a five-wave bullish cycle. This phase typically sees the strongest price acceleration, supporting further upside despite temporary corrections.
Q: Where can I trade ENS safely?
A: Major exchanges like OKX offer secure trading environments with deep liquidity for ENS/USDT pairs and advanced charting tools for technical analysis.
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Final Outlook: Cautiously Optimistic
The recent 40% surge in ENS reflects more than just speculative momentum—it signals renewed confidence in decentralized naming services as foundational Web3 infrastructure.
Technically, the breakout from a two-year downtrend is significant. Fundamentally, rising adoption across identity, social, and wallet layers strengthens its long-term case.
However, traders should remain cautious. Bearish divergence on the daily RSI and proximity to key resistance suggest a correction may occur before another leg upward. Those entering positions should consider dollar-cost averaging or waiting for a confirmed close above $25.
As Web3 continues to evolve, projects like ENS—simple in concept but powerful in utility—are likely to play an increasingly central role.
For now, all eyes are on whether $25 becomes support or resistance. The outcome will shape ENS’s path toward $40—and potentially beyond.