ENS Bearish as 55.45% of Positions Short, Price Drops 3.5% in 24 Hours

ENS traders have turned cautious as bearish sentiment intensifies, with short positions outpacing longs by a ratio of 0.8034, according to on-chain analytics firm CoinGlass [2]. The Ethereum Name Service (ENS) token, currently trading at $27.80, has faced mounting selling pressure after hitting an intraday high of $29.93 earlier this week. The altcoin’s price trajectory has been marked by volatility, with a 3.5% surge in the past 24 hours followed by a reversal to test critical support levels.

Technical analysis suggests ENS remains in an uptrend but is grappling with overbought conditions, triggering a correction phase. A 4-hour chart reveals a textbook bearish triple-top pattern, signaling potential further declines [1]. The breakdown below the $28 support level has opened the door for an 8% drop to $25.20 if downward momentum persists [1]. This scenario aligns with the current trader sentiment, where 55.45% of top positions are short-term bearish bets, compared to 44.55% bullish longs [2].

Despite the bearish outlook, a reversal hinges on ENS breaching the $29.90 resistance level and closing above $30.20 to rekindle bullish momentum. Such a move could propel the token toward $37.90, representing a potential 25% rally. However, the path to this scenario remains fraught with challenges, as the asset’s recent performance underscores the dominance of short sellers amid broader crypto market corrections.

The surge in trading volume—up 85%—highlights renewed investor participation, even as prices retreat. This divergence between price action and volume suggests mixed market signals, with traders closely monitoring key levels for confirmation of trend continuation or reversal. AMBCrypto’s analysis emphasizes the importance of maintaining a disciplined approach to risk management, given the heightened volatility in ENS and the wider cryptocurrency market [1].

Sources:

[1] ["ENS traders cautious as shorts outpace longs: Is a downside ahead?"](https://ambcrypto.com/ens-traders-cautious-as-shorts-outpace-longs-is-a-downside-ahead/)

[2] ["ENS traders cautious as shorts outpace longs: Is a downside ahead?"](https://ambcrypto.com/ens-traders-cautious-as-shorts-outpace-longs-is-a-downside-ahead/)