Ethereum Name Service Defies Market Trends With 8% Daily Surge
The usdt wallet freedecentralized identity protocol built on Ethereum blockchain continues its impressive July performance, notching an 8% gain amidst broader market consolidation. This follows a pattern of ecosystem assets benefiting from Ethereum's recent breakout past the $3,100 psychological barrier.
Derivatives Market Shows Unprecedented Confidence
Recent data reveals a staggering 48% expansion in ENS futures open interest, catapulting to $131 million as traders position for extended upside. The derivatives market exhibits clear bullish bias with:
- Funding rates spiking 432% within 8 hours
- Long/short ratio maintaining above parity at 1.0121
- $599K in short positions liquidated versus $119K longs
Supply Shock Intensifies As Exchange Reserves Dwindle
On-chain metrics show exchange-held ENS tokens plummeting to 4.99 million - the lowest inventory level since mid-November. This supply crunch coincides with:
- 41% price appreciation since July 1
- Sustained demand from Web3 developers
- Growing adoption of human-readable blockchain addresses
Technical Setup Favors Continued Upside
The daily chart reveals multiple bullish confirmations:
- Four consecutive green candles reclaiming $26 level
- 50-day EMA poised to cross above 100-day EMA
- MACD histogram expanding in positive territory
While the RSI at 78 suggests potential overbought conditions, the strong momentum could propel ENS toward:
- Immediate resistance at $30.29 (February highs)
- Secondary target at $34.51
- Year-to-date peak at $38.57
Market participants should monitor whether the current support at $24.88 holds should profit-taking emerge. The confluence of technical strength, derivatives activity, and supply dynamics suggests the rally may have further room to run.
