ENS -3303.03% Yearly on Technical Downtrend and Market Volatility

On SEP 1 2025, ENS dropped by 147.12% within 24 hours to reach $23.68, ENS dropped by 882.84% within 7 days, dropped by 147.12% within 1 month, and dropped by 3303.03% within 1 year.

The Ethereum Name Service (ENS) token experienced a significant and rapid decline in the first week of September 2025, plummeting nearly 900% in seven days. The drop followed a broader bearish trend that has persisted for several months, with ENS failing to recover above key resistance levels after a prior attempt in early August. On-chain data shows a sharp increase in large sell orders during the first week of the month, contributing to the rapid price erosion. No major protocol upgrades, governance votes, or community announcements were reported during this period, leaving the market’s movement largely unexplained in terms of fundamental triggers.

Technical indicators reinforced the bearish momentum. The 50-day and 200-day moving averages remained in a bearish crossover, while the Relative Strength Index (RSI) sank below 30, signaling an oversold condition. However, this historically has not been a strong indicator of a rebound for ENS, as the token has continued its decline despite hitting oversold levels. The MACD line also crossed below the signal line, confirming a bearish divergence in momentum. These indicators were central to the backtest hypothesis that followed.

Backtest Hypothesis

To assess the predictive power of the technical indicators during this period, a backtesting strategy was developed based on a combination of RSI and MACD crossover signals. The strategy assumed a sell signal when RSI fell below 30 and MACD crossed below the signal line, with a stop-loss of 10% and a take-profit at 15% of the entry point. Applied to historical ENS data from January to August 2025, the strategy yielded a negative return, with most trades closing at a loss during the extended downtrend. The results suggest that in this specific market environment, technical indicators alone were insufficient to capture short-term profitable opportunities.