Ethereum Name Service poised for a 30% rally

Ethereum Name Service (ENS) price has exceeded the weekly resistance level of $26.38, rising 3.2% on Monday to reach $31.76. On-chain data indicates a rise in ENS's daily active addresses, reflecting increased blockchain usage and suggesting potential for a price rally in the days ahead.

ENS price looks promising

Ethereum Name Service's price closed above the weekly resistance level at $26.38 last week and trades 3.2% higher at $31.76 on Monday.

ENS price has filled in the price imbalance between $37.28 and $28.90 and currently faces resistance at the midpoint of the imbalance at $33.51.

If the weekly support level at $26.38 holds, ENS could rally 30% from its current trading level at $31.76 to revisit its next weekly resistance level at $40.92.

The bullish thesis is supported by indicators like the Relative Strength Index (RSI) and Awesome Oscillator (AO) on the weekly chart, comfortably above their respective mean levels of 50 and 0. These momentum indicators strongly indicate bullish dominance.

ENS/USDT weekly chart

Santiment’s Daily Active Addresses index, which helps track network activity over time, aligns with the bullish outlook noted from a technical perspective. A rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.

In ENS’s case, Daily Active Addresses have risen by 93.5% in one day. This rise is the highest since mid-May and indicates that demand for ENS’s blockchain usage is increasing, which could eventually propel a rally in Ethereum Name Service’s price.

ENS Daily Active Addresses chart

However, if the ENS weekly candlestick closes below the $26.38 level, the bullish thesis will be invalidated, creating a lower low on the weekly chart. This development could see the Ethereum Name Service price crash by 29% to retest its weekly low of $18.74 from June 10.