Market Overview for Ethereum Name Service/Tether (ENSUSDT) on 2025-10-07

• ENSUSDT fell 4.8% over 24 hours amid bearish momentum, breaking below key support levels.
• Volatility spiked during late ET trading, with a 15-minute candle printing a 22.13 high and a 20.66 low.
• RSI entered oversold territory near 25, suggesting potential short-term reversal, though bearish divergence in volume remains a caution.
• Bollinger Bands expanded significantly during the session, confirming heightened volatility and uncertainty.
• The 50-period EMA crossed below the 20-period EMA on the 15-minute chart, reinforcing the bearish bias.

The ENSUSDT pair opened at $22.02 at 12:00 ET − 1 and closed at $20.76 at 12:00 ET, with a high of $22.13 and a low of $20.66 over the 24-hour period. Total volume was approximately 210,120 contracts, and notional turnover amounted to around $4.45 million. A sharp sell-off emerged late in the session, especially between 15:00 and 16:00 ET, where the price dropped from $20.88 to $20.76.

The price action showed strong bearish pressure, with the 20-period EMA crossing below the 50-period EMA on the 15-minute chart—a potential short-term bearish signal. On the daily chart, the 50-period and 100-period EMAs are both above current price levels, suggesting medium-term bearish bias. Notable support levels emerged at $21.50 and $21.00, while resistance remains at $22.00 and $22.13. A bearish engulfing pattern formed around the $22.10–22.13 level, confirming a breakdown in bullish momentum.

RSI reached an oversold level of 25 during the session, indicating potential for a short-term bounce, though volume failed to confirm this. MACD turned bearish, with the histogram showing a clear downward divergence and the line crossing below the signal line. Bollinger Bands expanded significantly during the sell-off, with the price closing near the lower band, signaling heightened volatility. The 61.8% Fibonacci retracement of the most recent bullish swing sits at $21.38, where a potential bounce or continuation of the bearish trend may be decided.

The 20 and 50-period EMAs and key Fibonacci levels suggest a high probability of further downward movement if $21.38 fails. Investors should watch for volume confirmation at key levels to assess whether the bearish trend is strengthening or if short-term buyers emerge. A test of the $20.75 level could trigger additional stop-loss selling.

Backtest Hypothesis
The described backtesting strategy involves entering a short position on ENSUSDT when the 20-period EMA crosses below the 50-period EMA on the 15-minute chart, with a stop-loss at the nearest Fibonacci resistance level and a target at the previous swing low. This approach aligns well with the recent bearish divergence in EMAs and MACD. Given the current setup, the strategy would have entered a short at around $22.11 with a stop at $22.13 and a target at $21.90. A modified version could consider entering only if RSI confirms oversold conditions (below 30) to filter for high-probability setups in a volatile environment.