Key Takeaways
ENS’s Long/Short Ratio is at 0.8034, indicating that bears are currently ruling. The altcoin can only turn bullish if it closes the daily candle above the $30.20 level.
On the 23rd of July, the overall crypto market experienced a price correction.
Amid this, Ethereum Name Service [ENS] reached a key resistance level, where it started facing selling pressure, and at press time, appeared poised for a price decline.
Why could ENS’ price fall?
ENS stood at $27.80 at the time of writing after a 3.5% price surge in the past 24 hours.
During this period, the asset recorded an intraday high of $29.93, from which it has been consistently reversing due to strong selling pressure.
Despite the price decline, participation from investors has skyrocketed, leading to an 85% surge in trading volume.
According to AMBCrypto’s technical analysis, ENS looked to be in an uptrend, but due to an overstretched price over the past few days, the asset was now facing a correction.
On a smaller time frame, specifically the 4-hour chart, it appeared to have formed a textbook-style bearish triple-top price action pattern.
The altcoin breached its local support at $28, which has now opened the path for further price decline.
Source: TradingView
If ENS continues to decline, there is a strong possibility that it could drop by 8% and reach the $25.20 level.
This bearish price outlook has been further strengthened by recent trader activity, as revealed by the on-chain analytics tool CoinGlass.
At present, ENS’s Long/Short ratio was 0.8034, indicating strong bearish sentiment. Moreover, 44.55% of top traders were betting on bullish long positions, while 55.45% were on bearish short positions.
Source: CoinGlass
Thus, it seems that the bears are dominating.
Exploring a bullish scenario
This bearish outlook could only end if the asset rallies, breaches the key resistance level of $29.90, and closes above $30.20.
This can cause the asset to turn bullish, potentially seeing a price uptick of over 25% and reaching the $37.90 level.
