[TL; DR]
After the United States approval of spot Ethereum ETFs the value of ENS rose b 43%.
The ENS token faces a massive sell-off since it is in an overbought market state.
The ENS price is likel to keep on rising since it is exhibiting a bullish momentum.
Introduction
The crpto sector has witnessed several important developments in 2024 including the launch of crpto spot ETFs and the Bitcoin halving event which should help the market to full recover from the effects of the recent longest crptocurrenc winter. The United States SEC approved spot bitcoin ETFs in Januar.
Recentl it approved several spot ETH ETFs which ma lead to capital inflow from the traditional financial sector into the crpto industr. This article covers how Ethereum Name Service (ENS) tokens have benefitted from the launch of ETH ETFs.
ENS's Recent Price Performance: Struggle to Break Past 2024 Highs
As hinted above, on 23 Ma the United States approved the launch of spot Ethereum ETFs which has alread impacted the crpto market. The markets of several digital assets such as the Ethereum Name Service (ENS) token reacted positivel to that development. According to the on-chain ENS market analsis, the value of ENS surged b 43% within a 24-hour period that stretched between 23 and 24 Ma.
We cannot full attribute that price spike to the news of the launch of the ETFs since the bullish momentum began before the announcement of the U.S approval of spot ETH ETFs. The speculation for the ETFs approval, the endorsement of ENS b Vitalik Buterin, the Ethereum co-founder, as well as the broader market sentiment might have collectivel triggered the ENS price spike.
Broader Positive Development in the Ethereum Ecosstem: One of the ke causes of the recent spike in the Ethereum Name Service token was the positive sentiment within the Ethereum crpto sphere. The ENS price analsis indicates that the positive sentiment enticed some influential ENS token investors to increase their investment in the token. One such ENS investor is Brantl Millegan, the former ENS Operations Director.
It is most likel that Millegans recent investment in the ENS token has contributed to its bullish outlook. As a fact, Millegan has deposited 291,305 ENS in Coinbase since Januar this ear as the next image shows. Source: x.com
Millegan also deposited over 4.196 million ENS tokens into Coinbase during the third week of Ma. In spite of depositing such large amounts of the token in Coinbase Exchange Millegan still holds 373,000 ENS worth around $7.97M. Basicall, the strategic buing and holding action b prominent investors like Millegan has helped to push the value of Ethereum Name Service Token high. Read also how to bu ENS on Gate.io.
At the time of writing, the ENS token is trading at $25.14 after losing b 0.1% within the last 24 hours. Generall, though, the ENS tokens with a market capitaliation of $790,583,645 and circulating suppl of 31,477,146 has a bullish outlook. This is evident through its performance over the past one ear. The following graph shows the ENS token price movement for that period.
Read also: ENS V2: Expanding ETH Domain Services to L2 ENS Token Price Movement: CoinGecko
As observed on The Graph, the ENS token was bullish since 31 December 2023 when its price reached $9.89. The approval of spot bitcoin ETFs in the United States might have influenced its price to rise and reach $24.22 on 12 Januar.
Ethereum ETF Approval: Of course, the approval of Ethereum ETFs in the United States has a great impact on the values of tokens that exist on the blockchain. Based on crptocurrenc trends 2024, what contributed much to the ENS price rise was the anticipation of the launch of the ETFs. There was much excitement in the crpto market after Eric Balchunas and James Seffart, two renowned Bloomberg ETF analsts, raised the probabilit of the approval of ETH ETFs from 25% to 75%.
Also, the rumours about the ETFs became more influential when investors learned that the U.S SEC was encouraging the prospective issuers to expedite the Ethereum ETF 19 b-4 applications which signalled the potential for their approval. The anticipation of the launch of ETFs has alwas impacted positivel on the crpto market. For instance, the expectation of the approval of spot bitcoin ETFs during Januar triggered the Q1, 2024 crpto rall.
Now, the launch of the ETH ETFs ma lead to the rise in demand for the Ethereum crpto. However, it is important to note that the ETF issuers have not et launched the investment assets.
Read also: ENS Price Prediction for 2024-2030
Vitalik Buterins Endorsement: The Ethereum ENS received another boost when Vitalik Buterin endorsed them as a high qualit crpto product. The Ethereum co-founder even uttered his amaement on how man crpto investors are not aware that the ENS token is a worthwhile investment asset. Thus, Buterin has simpl emphasied the utilit of the ENS. The simplification of Ethereum addresses into readable text increases user experience as that reduces risks of error when making transactions.
Analsis of the Impact of ETH ETFS: ENS Market Value to Realied Value (MVRV) ratio
One thing for sure is that the massive interest in ENS pushed it into an overbought market one, exhibited b a surge in its Market Value to Realied Value (MVRV) ratio. On 24 Ma, for example, the 30-da Ethereum Name Services MVRV was 25.7%, indicating profit which could trigger a market sell-off. In the past, the ENS used to experience a market correction when its MVRV ratio ranged between 7% and 21%, which was historicall labelled the danger one. The next graph shows the ENS MVRZ state during the fourth week of Ma. ENS MVRV Ratio Santiment
With such a high MVRV ratio man investors are likel to sell their ENS tokens since the are in the profit one. The rise in active ENS addresses substantiate the suspicion that some token holders ma sell their holdings. ENS Active Deposits Santiment
As the graph indicates during the cited period there was an increase in active ENS wallet addresses, signalling that the are read to sell their tokens. An massive sale of the token, however, ma usher in a bearish period.
Ethereum Name Service - brief overview
Ethereum Name Service exists on the blockchain, thus, is decentralied in nature. It enables users to create their own ETH domain names which are stored in digital wallets and ensure ownership as well as securit of Ethereum blockchain-based virtual assets. The interesting thing is that people can trade and transfer the ENS as the do with various decentralied assets.
ENS Price Predictions
At press time, the ENS token is changing hands at $25.14 and it has a bullish outlook. Based on the current ENS price analsis, its next ke resistance level is at $26. On the other hand, The Coinpriceforecast price prediction shows that the ENS price ma rise to $50 b mid-2024 and $75 b the end of the ear. The crptocurrenc trends 2024 shows a bullish ENS market since the token has a Greed and Fear reading of 73. Looking into the future, the ENS ma trade at $78.54 b the end of 2025 and $124.39 b 2030.
Conclusion
Despite the recent ENS price rall, the token has failed to sustain the bullish momentum which the launch of the spot ETH ETFs generated. Buterins endorsement and the broader crpto market sentiment have also helped to drive the value of the ENS token up. As a result, the token has maintained a bullish momentum. Nevertheless, the high MVRV value shows a possibilit of mass sale-off which ma force its price down.
FAQs about Ethereum ENS
What is Ethereum Name Services?
The Ethereum Name Services (ENS) is a sstem for naming Ethereum digit wallet addresses in a human readable form such as mavis.eth. Such names are suitable for Ethereum users as the minimie transaction errors.
Is Ethereum name service a good investment?
The Ethereum Name Services is a good investment since its based on safe technolog and offers utilit to the Ethereum network. Also it is ver eas to sell and transfer ENS tokens.
What is the purpose of ENS?
The main purpose of ENS is to make transactions easier and safer than the traditional Ethereum digital wallet addresses. The users no longer need to worr about safe keeping of their private kes or seed phrases.
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