ENS Price: Bears in Control? Short Positions Surge
ENS Traders Cautious: Shorts Dominate – What's Next?
Ethereum Name Service (ENS) is under pressure as short positions outpace longs, raising concerns about a potential price decline. Here’s a breakdown of the key factors influencing ENS's price action:
Key Takeaways:
- Bearish Sentiment: ENS’s Long/Short Ratio is at 0.8034, signaling that bears currently control the market.
- Critical Level: ENS can turn bullish only if it closes a daily candle above $30.20.
On July 23rd, the broader crypto market saw a price correction. ENS reached a crucial resistance level and is now experiencing selling pressure, suggesting a possible price decrease.
Why ENS Price Could Drop
As of writing, ENS is priced at $27.80, after a 3.5% increase in the last 24 hours. Despite this, ENS hit an intraday high of $29.93 but has since reversed due to strong selling pressure.
Investor participation has surged, with trading volume increasing by 85%.
Technical analysis indicates that ENS was in an uptrend but is now facing a correction due to an overextended price. The 4-hour chart shows a bearish triple-top pattern. Breaching the local support at $28 has opened the door for further declines.
If ENS continues to decline, it could drop by 8% to the $25.20 level.
Data from CoinGlass reveals that ENS’s Long/Short ratio is 0.8034, highlighting strong bearish sentiment. Currently, 44.55% of top traders are taking long positions, while 55.45% are taking short positions.
The bears appear to be in control.
Bullish Scenario
The bearish outlook could be averted if ENS rallies, breaks the resistance at $29.90, and closes above $30.20. This could trigger a bullish trend, potentially increasing the price by over 25% to $37.90.