ENS Whales Accumulate More as Network Activity Climbs
ENS Whales – A few weeks ago, Ethereum Name Service (ENS) saw its price inch closer to $35. However, since the beginning of July, the value has struggled to attain such heights, currently trading at $27.38. Despite this, on-chain analysis suggests that behind-the-scenes activities could soon propel ENS toward higher valuations.
Record Whale Accumulation Sparks Hope for Price Rally
IntoTheBlock’s data reveals that despite ENS’s tight trading range, whale investors have been increasing their holdings. The Large Holders Netflow metric, which tracks the activity of significant market participants holding a substantial portion of a cryptocurrency’s circulating supply, shows a remarkable 882.87% increase in ENS holdings over the last seven days. This surge, highlighted by the purchase of 165,850 tokens on July 22, indicates strong buying activity from whales. Sustained accumulation at this level could drive positive momentum for ENS prices.
Spot Ethereum ETFs Fuel Whale Accumulation
BeInCrypto’s research indicates that the recently launched spot Ethereum ETFs may be contributing to this accumulation. Speculation around the SEC’s approval of these ETFs has led to expectations of increased prices for Ethereum-related tokens, prompting strategic positioning by whale investors in anticipation of a price surge.
Network Activity Reaches New Highs
Network activity on the Ethereum Name Service has also seen a significant uptick, reaching its highest level since July 11. Data from Santiment shows that 24-hour active addresses spiked to 458, suggesting a renewed interest in ENS. Active addresses reflect distinct users successfully sending or receiving ENS, and increased engagement typically correlates with bullish price movements. If this trend continues, ENS prices could see further upward movement in the coming days.
ENS Price Prediction: $30 Remains a Key Resistance Level
The ENS/USD daily chart indicates that the token has been consolidating between $24.87 and $28.84 for nearly two weeks. This sideways trading pattern is likely to continue in the short term, as supported by the Commodity Channel Index (CCI), which measures the current price condition relative to the average price level over a given period. While the CCI has increased, it is not yet high enough to suggest a strong upswing. ENS may continue trading between a swing high of $28.35 and a low of $26.50. However, sustained whale accumulation could push the token beyond this range toward $30.97.
Potential Impact of Spot Ethereum ETFs
The potential for a significant influx of funds into spot Ethereum ETFs in their initial week could further validate an uptrend. Additionally, pseudonymous trader CyptoBull_360 suggests that ENS is poised for a substantial breakout, targeting $45-$50 zones. The trader notes, “ENS is getting ready for a massive breakout from multiple resistance zones by forming a bullish engulfing candle from PoC value zone on the 4-hour timeframe. Consolidation above the zone might trigger a strong rally towards $45-$50 zones.”
FAQ: Ethereum Name Service (ENS) Whale Accumulation and Network Activity
What is causing the recent increase in ENS whale accumulation?
The recent increase in ENS whale accumulation is primarily driven by strategic positioning in anticipation of price rises. Whales, or large holders, have been increasing their ENS holdings significantly. This trend started around July 21, as tracked by the Large Holders Netflow metric, which showed a remarkable 882.87% increase in whale holdings over the past week.
How does whale accumulation impact the price of ENS?
Whale accumulation typically indicates strong buying activity, which can positively influence the price of ENS. When large holders increase their holdings, it reduces the available supply in the market, potentially driving up the price. Sustained accumulation by whales can create upward momentum and push prices higher.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment