- The price of ENS has risen significantly over the past 24 hours.
- This was due to comments from Ethereum co-founder Vitalik Buterin.
ENS, the governance token of the Ethereum Name Service project, rose 63% during the intraday trading session on January 3 after Ethereum co-founder Vitalik Buterin declared that the domain name protocol is “super important.”
All L2s should work on (reliable, merkle-proof-based) CCIP resolvers, so we can register, update and read ENS subdomains directly on L2s.
ENS is super important, it must be affordable!https://t.co/Ice1lTttFE
— vitalik.eth (@VitalikButerin) January 3, 2024
In a post on
Cross Chain Interoperability Protocol (CCIP) resolvers are a key part of the Ethereum Name Service (ENS) that allow users to store and retrieve data associated with their ENS domains on other blockchains or off-chain storage solutions.
ENS wins, thanks to Buterin
After Buterin’s tweet, ENS rose more than 60%. Although it has lost some of these gains over the past 24 hours, the token is now trading at its highest price since April 2023.
At the time of writing, it was exchanging hands at $13.75, with the price rising 31% in the past 24 hours, according to data from CoinMarketCap.
The price movements, observed on a 12-hour chart, showed an increase in the key momentum indicators. For example, the token’s Relative Strength Index (RSI) was 81.10, while the Money Flow Index (MFI) was 88.64.
Source: TradingView
Although the values of these indicators showed that the accumulation of ENS significantly exceeded the sell-off, they also indicated that the market was overheated. At those levels, buyer exhaustion is common and thus a withdrawal may occur.
The Chaikin Money Flow (CMF) confirmed the strong increase in liquidity inflows in the ENS market and stood at 0.22 at the time of writing. When an asset’s CMF is above the zero line and in an uptrend, it means there is steady capital inflow. This is known to help support an asset’s price appreciation.
Likewise, ENS’s Aroon Up Line (orange) was at its peak at the time of writing. At 100% it showed that the uptrend was strong and the most recent high was reached relatively recently.
In the token derivatives market, trading volume has increased by more than 3,000% in the past 24 hours, according to data from Mint glass showed. With a 114% increase over the same period, ENS open interest remained at its highest level since October.
Source: Coinglass
