Gate.io Blog Ethereum Name Service (ENS) Struggles to Sustain Rally: A 2024 Price Analysis

Ethereum Name Service (ENS) Struggles to Sustain Rally: A 2024 Price Analysis

05 June 15:42

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![](https://gimg2.gateimg.com/image/article/1692587449analysis.jpeg)
### [TL; DR]
After the United States’ approval of spot Ethereum ETFs the value of ENS rose by 43%.

The ENS token faces a massive sell-off since it is in an overbought market state.

The ENS price is likely to keep on rising since it is exhibiting a bullish momentum.

## Introduction 
The crypto sector has witnessed several important developments in 2024 including the launch of crypto spot ETFs and the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> halving event which should help the market to fully recover from the effects of the recent longest cryptocurrency winter. The United States [SEC approved spot bitcoin ETFs in January](https://www.gate.io/blog_detail/3707/bitcoin-etf-approval-analysts-weigh-in-on-implications "SEC approved spot bitcoin ETFs in January").

Recently it approved several spot ETH ETFs which may lead to capital inflow from the traditional financial sector into the crypto industry. This article covers how <a href="/price/ethereum-name-service-ens" target="_blank" class="blog_inner_link">Ethereum Name Service</a> ([ENS](https://www.gate.io/blog_detail/398/what-is-ens-and-did "ENS")) tokens have benefitted from the launch of ETH ETFs.

## ENS's Recent Price Performance: Struggle to Break Past 2024 Highs
As hinted above, on 23 May the United States approved the launch of spot Ethereum ETFs which has already impacted the crypto market. The markets of several digital assets such as the [Ethereum Name Service](https://www.gate.io/blog_detail/1503/what-is-the-ethereum-name-service-ens "Ethereum Name Service") (ENS) token reacted positively to that development. According to the on-chain ENS market analysis, the value of ENS surged by 43% within a 24-hour period that stretched between 23 and 24 May.

We cannot fully attribute that price spike to the news of the launch of the ETFs since the bullish momentum began before the announcement of the U.S approval of spot ETH ETFs. The speculation for the ETFs approval, the endorsement of ENS by Vitalik Buterin, the Ethereum co-founder, as well as the broader market sentiment might have collectively [triggered the ENS price](https://www.gate.io/price/ethereum-name-service-ens/php "triggered the ENS price") spike.

Broader Positive Development in the Ethereum Ecosystem: One of the key causes of the recent spike in the Ethereum Name Service token was the positive sentiment within the <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum crypto</a> sphere. The [ENS price analysis](https://www.gate.io/price/ethereum-name-service-ens/ves "ENS price analysis") indicates that the positive sentiment enticed some influential ENS token investors to increase their investment in the token. One such ENS investor is Brantly Millegan, the former ENS Operations Director.

It is most likely that Millegan’s recent investment in the ENS token has contributed to its bullish outlook. As a fact, Millegan has deposited 291,305 ENS in Coinbase since January this year as the next image shows.
![](https://gimg2.gateimg.com/image/article/17175730521.jpg)
Source: x.com

Millegan also deposited over 4.196 million ENS tokens into Coinbase during the third week of May. In spite of depositing such large amounts of the token in Coinbase Exchange Millegan still holds 373,000 ENS worth around $7.97M. Basically, the strategic buying and holding action by prominent investors like Millegan has helped to push the value of Ethereum Name Service Token high. Read also how to [buy ENS on Gate.io](https://www.gate.io/how-to-buy/ethereum-name-service-ens "buy ENS on Gate.io").

At the time of writing, the ENS token is trading at $25.14 after losing by 0.1% within the last 24 hours. Generally, though, the ENS tokens with a market capitalization of $790,583,645 and circulating supply of 31,477,146 has a bullish outlook. This is evident through its performance over the past one year. The following graph shows the ENS token price movement for that period.

Read also: [ENS V2: Expanding ETH Domain Services to L2](https://www.gate.io/learn/articles/ens-v2-expanding-eth-domain-services-to-l2/3101 "ENS V2: Expanding ETH Domain Services to L2")
![](https://gimg2.gateimg.com/image/article/17175730992.jpg)
ENS Token Price Movement: CoinGecko

As observed on <a href="/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a>, the ENS token was bullish since 31 December 2023 when its price reached $9.89. The approval of spot bitcoin ETFs in the United States might have influenced its price to rise and reach $24.22 on 12 January.

Ethereum ETF Approval: Of course, the approval of Ethereum ETFs in the United States has a great impact on the values of tokens that exist on the blockchain. Based on cryptocurrency trends 2024, what contributed much to the ENS price rise was the anticipation of the launch of the ETFs. There was much excitement in the crypto market after Eric Balchunas and James Seyffart, two renowned Bloomberg ETF analysts, raised the probability of the approval of ETH ETFs from 25% to 75%.

Also, the rumours about the ETFs became more influential when investors learned that the U.S SEC was encouraging the prospective issuers to expedite the Ethereum ETF 19 b-4 applications which signalled the potential for their approval. The anticipation of the launch of ETFs has always impacted positively on the crypto market. For instance, the expectation of the approval of spot bitcoin ETFs during January triggered the Q1, 2024 crypto rally.

Now, the launch of the ETH ETFs may lead to the rise in demand for the Ethereum crypto. However, it is important to note that the ETF issuers have not yet launched the investment assets.

Read also: [ENS Price Prediction for 2024-2030](https://www.gate.io/price-prediction/ethereum-name-service-ens "ENS Price Prediction for 2024-2030")

Vitalik Buterin’s Endorsement: The Ethereum ENS received another boost when Vitalik Buterin endorsed them as a high quality crypto product. The Ethereum co-founder even uttered his amazement on how many crypto investors are not aware that the ENS token is a worthwhile investment asset. Thus, Buterin has simply emphasized the utility of the ENS. The simplification of Ethereum addresses into readable text increases user experience as that reduces risks of error when making transactions.

## Analysis of the Impact of ETH ETFS: ENS’ Market Value to Realized Value (MVRV) ratio
One thing for sure is that the massive interest in ENS pushed it into an overbought market zone, exhibited by a surge in its Market Value to Realized Value (MVRV) ratio. On 24 May, for example, the 30-day Ethereum Name Service’s MVRV was 25.7%, indicating profit which could trigger a market sell-off. In the past, the ENS used to experience a market correction when its MVRV ratio ranged between 7% and 21%, which was historically labelled the danger zone. The next graph shows the ENS’ MVRZ state during the fourth week of May.
![](https://gimg2.gateimg.com/image/article/17175731703.jpg)
 ENS MVRV Ratio – Santiment
 
With such a high MVRV ratio many investors are likely to sell their ENS tokens since they are in the profit zone. The rise in active ENS addresses substantiate the suspicion that some token holders may sell their holdings. 
![](https://gimg2.gateimg.com/image/article/17175732074.jpg)
ENS Active Deposits – Santiment

As the graph indicates during the cited period there was an increase in active ENS wallet addresses, signalling that they are ready to sell their tokens. Any massive sale of the token, however, may usher in a bearish period.

##  Ethereum Name Service - brief overview
Ethereum Name Service exists on the blockchain, thus, is decentralized in nature. It enables users to create their own ETH domain names which are stored in digital wallets and ensure ownership as well as security of Ethereum blockchain-based virtual assets. The interesting thing is that people can trade and transfer the ENS as they do with various decentralized assets.

## ENS Price Predictions
At press time, the ENS token is changing hands at $25.14 and it has a bullish outlook. Based on the current ENS price analysis, its next key resistance level is at $26. On the other hand, The Coinpriceforecast <a href="/price-prediction" target="_blank" class="blog_inner_link">price prediction</a> shows [that the ENS price may rise to $ 50 by mid-2024](https://coinpriceforecast.com/ens-coin "that the ENS price may rise to $ 50 by mid-2024") and $75 by the end of the year. The cryptocurrency trends 2024 shows a bullish ENS market  since the token has a Greed and Fear reading of 73. Looking into the future, the ENS may trade at $78.54 by the end of 2025 and $124.39 by 2030.

## Conclusion 
Despite the recent ENS price rally, the token has failed to sustain the bullish momentum which the launch of the spot ETH ETFs generated. Buterin’s endorsement and the broader crypto market sentiment have also helped to drive the value of the ENS token up. As a result, the token has maintained a bullish momentum. Nevertheless, the high MVRV value shows a possibility of mass sale-off which may force its price down.

## FAQs about Ethereum ENS
### What is Ethereum Name Services?
The Ethereum Name Services (ENS) is a system for naming <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> digit wallet addresses in a human readable form such as mavis.eth. Such names are suitable for Ethereum users as they minimize transaction errors.
### Is Ethereum name service a good investment?
The Ethereum Name Services is a good investment since it’s based on safe technology and offers utility to the Ethereum network. Also it is very easy to sell and transfer ENS tokens.  
### What is the purpose of ENS?
The main purpose of ENS is to make transactions easier and safer than the traditional Ethereum digital wallet addresses. The users no longer need to worry about safe keeping of their private keys or seed phrases.

<div class="blog-details-info">
<div>Author:**Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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TL；DR

Introduction

ENS_s Recent Price Performance

Analysis of the Impact of ETH ETFS

Ethereum Name Service - brief overview

ENS Price Predictions

Conclusion

FAQs about Ethereum ENS

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