ENS faces resistance at $28 – Signals indicate caution.

Ethereum Name Service (ENS) is trading at $26.4 on Friday, August 1st. As of the time of writing, this altcoin has recorded a fall of 8.6% on the day, bringing the market capitalization down to $870 million.

Since the end of June – the time when ENS fell to the bottom at $16.03 – the price has surged strongly, with a recovery of up to 71% in just over five weeks. This is an impressive turnaround that has attracted the attention of investors.

However, some on-chain indicators show that there are still concerning signs, forcing investors to consider carefully before taking action.

Source: TradingViewFrom a price action perspective, the bulls still have grounds to maintain an optimistic outlook. Although the Ethereum Name Service (ENS) has not yet been able to conquer the important resistance level at $28, the fact that the price remains stable above the support area of $26 is a positive signal. This is the area that is preserving the bullish structure with higher highs and higher lows – a typical characteristic of an uptrend.

The Awesome Oscillator indicator continues to record existing upward momentum, reinforcing the confidence of buyers. However, the signal from the Chaikin Money Flow (CMF) indicates that caution is increasing, as this index has dropped from +0.27 (on January 17 to +0.03 – reflecting that the inflow of money into the market is showing signs of stagnation in the past two weeks.

If ENS loses the support level of $26, this could be a warning sign for a short-term correction, while also adding selling pressure to the market.

Conversely, if the buying power is strong enough to sustain the recovery momentum, the price could once again test the $28 level. A decisive breakout above this level will open up opportunities to move towards higher resistance zones, such as $38 and even $48 – price levels that could signal a convincing return of the bulls.

Signs that ENS investors lack consistency

![])https://img-cdn.gateio.im/webp-social/moments-3b5e3e1d75461b2000e6a6d173be5063.webp(Source: CryptoQuantThe netflow) chart into the Binance exchange shows that Ethereum Name Service (ENS) is recording the highest average inflow over 7 days – after being normalized.

Typically, a high influx of capital like this is a sign that selling pressure is increasing, thus emitting a clear negative signal in the short and medium term.

Source: GlassnodeMore concerning, the accumulation ratio of ENS holders – an indicator reflecting whether investors are increasing or reducing their positions – is also on a downward trend.

Having previously surpassed 50% in April, this rate has continuously moved down since then, even in the context of ENS prices trending upwards.

This trend indicates that the distribution of tokens is quietly taking place, while reflecting a lack of confidence in the current upward momentum of investors.

The CVD indicator (Cumulative Volume Delta) on the 90-day timeframe for the spot market is currently in a neutral state. This indicates that neither the buyers nor the sellers have truly gained an advantage — the selling pressure is not dominating, but there are also no clear signals of aggression from the bulls. At the same time, the spot trading volume map has not recorded any significant signs of "excitement" from the market.

In this context, the possibility of the bears regaining control of the market is entirely plausible. The first warning signal for this scenario would be if the price of ENS slips below the support level of $26.15 — an important threshold that, if breached, would pave the way for a deeper fall. The bulls must clearly and decisively demonstrate their strength if they wish to maintain the balance.

On the contrary, without compelling evidence of increased demand, the possibility of ENS breaking through the key resistance zone of $30–$32 is very unlikely.

SN_Nour