Ethereum Name Service (ENS) has emerged as one of the best-performing cryptocurrencies this year. Its token has jumped for two weeks straight and moved to its highest point since January 2022.
ENS has jumped by more than 220% this year while Ethereum and Bitcoin have jumped by 57% and 47%, respectively. It has also outperformed other popular cryptocurrencies like Solana, Chainlink, and Cardano.
Why ENS is soaring
Ethereum Name Service is one of the most popular names in the blockchain industry. It is a platform that lets users to register their .ETH domains easily and pay a small amount of money. For example, if your name is John, it makes it possible for you to create a john.eth domain.
This domain is important because it can then become your Web3 identity instead of the random characters that are associated with the industry. Ethereum Name Service is compatible with most blockchains, including popular names like Optimism, Solanam Arbitrum, and Base Blockchain.
Over the years, Ethereum Name Service has accumulated over 2.14 million names and 409 integrations. And analysts, including Vitalik Buterin, have praised the platform’s vision of simplifying the Web 3 industry.
The ENS token price has jumped as investors wait for the upcoming ENSv2 upgrade, which will be focused on scalability, affordability, and flexibility. According to the upgrade roadmap, the developers are now working on upgrading the name resolution and handling the reserve resolution.
The developers have not shared when the V2 upgrade will happen. Based on the roadmap, there are signs that it will take a few months before the upgrade happens.
ENS is gearing up for ENSv2! To address community concerns about the impact on current ENS names and the platform's future, we've put together an FAQ with some of most of the commonly asked questions.https://t.co/hK0Xf89khh
— ens.eth (@ensdomains) June 21, 2024
Cryptocurrencies are rising
Ethereum Name Service price also jumped on Monday because of the performance of other cryptocurrencies. After falling to $60,000 on Saturday, Bitcoin rebounded to $63,500, its highest point in almost two weeks.
This rebound triggered a big jump in the crypto industry. Ethereum rose to over $3,500 while Jasmy soared to $0.030. Some of the other top-performing cryptocurrencies were the likes of Dogwifhat (WIF), Mog Coin, Beam, and Render Token. In most cases, altcoins jump when Bitcoin is doing well.
Meanwhile, there are signs that the SEC will approve a spot Ethereum ETF in this quarter. While the agency sent back the S1 filings back to the issuers, signs are that the approval will happen later this quarter. ENS token is expected to do well when this happens.
The rally also happened as a sense of calm happened after the French election in which popular right-leaning parties won by a less margin than feared. As a result, global stock futures jumped and the US dollar index pulled back.
From a macro level, the US Personal Consumption Expenditure (PCE) numbers showed that inflation pulled back in May. The core PCE dropped for the first time in six months, a welcome move by the Federal Reserve. In most cases, cryptocurrencies like Bitcoin and Ether do well when there is optimism of Fed cuts.
Ethereum Name Service price forecast
ENS chart by TradingView
The daily chart shows that the ENS token price has been in a strong bull run in the past few months. This rally culminated in the token moving above the crucial resistance point at $30.50, its highest point on March 5th of this year. It also rose above the key psychological level at $30.
Ethereum Name Service has remained above the 50-day and 100-day Exponential Moving Averages (EMA). The MACD, Relative Strength Index (RSI), and the Stochastic Oscillator have moved to the overbought level.
Also, the momentum oscillator has pointed upwards. Therefore, the token will likely continue soaring as buyers target the next key resistance point at $40. A drop below the support at $30.47 will invalidate the bullish view.
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