Market Overview for Ethereum Name Service/Tether (ENSUSDT) — October 4, 2025

• Price declined from $22.32 to $21.06 amid broad bearish momentum.
• Key resistance at $22.00–$22.08 failed, with support found near $21.19.
• Volume surged in the late hours as price accelerated downward.
• RSI hit oversold territory, but divergence suggests potential for a rebound.
• Volatility expanded, with price testing Bollinger Band lows.

Ethereum Name Service/Tether (ENSUSDT) opened at $21.77 (12:00 ET − 1), reached a high of $22.32, dipped to a low of $21.06, and closed at $21.07 (12:00 ET) on October 4, 2025. The 24-hour volume totaled 190,825.94 USDT, with a notional turnover of $4.07 million.

Price action over the past 24 hours revealed a strong bearish bias, particularly after 18:00 ET when ENSUSDT broke below $22.00 and began a sustained decline. A key resistance cluster at $22.00–$22.08 failed to hold, and price continued to trend lower into the overnight hours. A notable bearish engulfing pattern formed around 17:15–17:30 ET, signaling a shift in sentiment from short-term bullishness to bearish continuation.

Bollinger Bands showed a significant widening as the price approached the lower band, indicating high volatility and a possible exhaustion of the downward move. The RSI indicator fell into oversold territory below 30, though the divergence between the price and RSI—where price continues to fall while RSI slows—suggests potential for a short-term bounce. The 20-period and 50-period moving averages on the 15-minute chart remained in a bearish alignment, reinforcing the downward pressure.

Fibonacci retracement levels from the recent high of $22.32 to the low of $21.06 show key psychological support at 38.2% (~$21.58) and 61.8% (~$21.32). ENSUSDT is currently trading slightly below the 61.8% level, which may serve as a near-term floor. The MACD crossed into negative territory with a bearish crossover, while the histogram showed increasing bearish momentum in the final hours of the session. Volume and turnover spiked during the late-night and early-morning hours, coinciding with the rapid price drop. This confirms strong selling pressure but could also indicate a nearing exhaustion point.

Backtest Hypothesis

The backtest strategy aims to exploit the recent bearish divergence between price and RSI in ENSUSDT, particularly as the asset approached oversold conditions. A potential long entry could be triggered once RSI closes back above 30 and price breaks above the 61.8% Fibonacci level at $21.32. A stop-loss could be placed below $21.19, the 24-hour low, while a take-profit target might be set at $21.58, the 38.2% retracement level. This strategy would aim to capture a potential rebound in a consolidative phase following the sharp decline. Given the high volume and volatility, this approach may work best in a ranging or corrective market, as a continuation of the bearish trend could invalidate the signal.