Ethereum News Today: Ethereum Name Service surges 18.2% to 5-month high of $26.76 on strong buy-side pressure

Ethereum Name Service (ENS) has recently surged to a 5-month high of $26.76, marking an 18.2% increase and breaking out of its prolonged downtrend. This rally has sparked speculation about whether it is a fleeting surge or the beginning of a more substantial upward trend. The heightened activity is evident in the 197% spike in trading volume to $369 million, indicating significant on-chain and speculative interest.

The spot market has shown strong buy-side pressure, with ENS recording four consecutive days of positive Buy-Sell Delta. On July 16, the Buy Volume reached 443k compared to 363k in Sell Volume, reflecting higher demand. This pattern continued over the past three days, with buy volume consistently surpassing sell volume. As a result, the market recorded a positive Buy-Sell Delta of 80k, signaling aggressive spot accumulation. Santiment data further supports this thesis, showing that ENS’ Price–DAA Divergence remained positive all week, suggesting rising network usage alongside the price increase. This typically indicates that user growth is driving the rally, rather than mere speculation.

However, derivatives traders appear skeptical of the breakout. Open Interest jumped 47.77% to $132.19 million, while derivatives volume soared 220.68% to $517.93 million. Despite this, the Long/Short Ratio did not flip bullish, remaining at 0.97, with Short Positions making up 50.75% of trades. Even on major exchanges like Binance, Long/Short Ratios for top traders hovered between 1.36 and 1.69, indicating only moderate long-side conviction. This suggests that many futures traders are shorting the rally, expressing skepticism about its sustainability.

As prices rallied, there was a notable increase in profit-taking activity. Netflow data showed $3.46 million worth of ENS moving to exchanges, the highest level this year. For three consecutive days, positive Netflows indicated that traders were locking in profits after holding through months of underwater prices. When exchanges recorded positive Netflow, it confirmed more deposits than withdrawals, signaling aggressive profit-taking.

According to AMBCrypto’s analysis, ENS experienced a strong upswing as demand recovered. The altcoin’s Stochastic RSI surged to 100, entering the overbought zone, while the RVGI surged to 0.37, signaling strong upward momentum. These indicators support buyer dominance but also raise the risk of volatility ahead. If bulls maintain control, ENS could test the $30 resistance next. However, if selling pressure increases, a retracement toward $23.06 is likely.