ENS, the native token of Ethereum Name Service, a decentralized naming system, has seen a strong price surge, jumping 37% in the past 24 hours. This phenomenon makes it the fastest growing cryptocurrency in the top 100.
During Thursday morning trading in Asia, this altcoin reached its highest level since the beginning of the year at 37.29 USD before retreating slightly. Currently the price is at 34.17 USD, accompanied by a significant increase in trading volume.
Ethereum Name Service sees a spike in transaction activity
A significant increase in trading volume has followed the sharp jump in ENS. It has hit an all-time high of $2.35 billion, soaring more than 300% in the past 24 hours.
When an asset’s trading volume increases along with its price, it signals strong investor interest. Rising volume confirms that the price move is supported by active participation, making the upward momentum more sustainable. Conversely, an increase in price without growth in volume could suggest a weaker uptrend that is susceptible to a reversal.
This means that genuine demand for the Token, rather than speculative trading activity, has been driving ENS’s rally.
Furthermore, the altcoin’s open interest has spiked to a multi-month high of $132 million, confirming an increase in trading activity. According to Santiment, this interest rate has increased by 7% in the past 24 hours and has now reached its highest level since July.
Open interest measures the total number of unfilled or closed contracts (such as futures or options) that have not yet been settled. When it rises during a bull run, it shows that more traders are entering positions, suggesting strong market participation in the bullish momentum.
This signals a continuation of the trend, as rising open interest reflects growing confidence in the price move.
ENS Price Forecast: Buyers may soon face pressure
As of now, ENS is trading above the support formed at $31.57. A successful support test would push the Token price to recapture its yearly high of $37.29.
However, figures from the ENS Relative Strength Index (RSI) suggest the market is overheating, and buyers could soon experience exhaustion. The value of this index is currently 79.27.
The RSI measures overbought and oversold market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating the asset is overbought and could be in for a correction. Conversely, RSI values below 30 signal the asset is oversold and may be ready to recover.
A potential correction would push the ENS Token price below the support at $31.57 and towards $28.27.