Ethereum Network Token (ENS) has reached $28, yet these signs hint at potential cautions in the near future.

Ethereum Network Token (ENS) has reached $28, yet these signs hint at potential cautions in the near future.

Ethereum Name Service (ENS) Faces Potential Bearish Short-Term Outlook

The Ethereum Name Service (ENS) is currently trading at $28.63, but several factors suggest a potential bearish short-term outlook.

Technical analysis identifies immediate support around $20.85 and a stronger support at $16.03. If ENS fails to hold the $20.85 level, this could trigger increased selling pressure as traders target the next support zone near $16.03.

Recently, ENS fell 4.14% despite an overall bullish trend, indicating underlying weakness or profit-taking pressures that could lead to further downside in the short term. The token faces strong resistance at about $32, which aligns with the upper Bollinger Band. Multiple rejections at this resistance could prompt traders to sell and reduce holdings, adding to short-term bearish momentum.

Approaching full token supply unlock in December 2025 may increase circulating supply, potentially exerting downward pressure if demand does not keep pace. Additionally, the holder accumulation ratio has been declining despite rising prices, suggesting a lack of conviction among investors.

ENS price forecasts show wide ranges and extreme volatility, with some analyses predicting cautious or conservative price behavior in 2025–2026, which may reflect uncertainty and hesitation among traders, often a precursor to selling pressure.

The price action showed a rejection at the $32 resistance level, and the next price targets for ENS are $34 and $38. However, without evidence of increased demand, a breakout past the $30-$32 resistance zone might not materialize. An early sign of sellers regaining control of the market could be a price drop below $26.15, which is key over the next few days. A dip below the $26.15 level could signal a bearish short-term outlook.

On a positive note, the Awesome Oscillator shows bullish momentum in progress. However, the 90-day spot taker CVD was neutral, not showing seller dominance but also not reflecting buyer strength. The altcoin netflow to Binance chart showed increased likelihood of selling pressure, and ENS saw the highest normalized 7-day average inflows to Binance, which is a strong bearish sign.

Despite these challenges, ENS has recovered 71% since dipping to $16.03 in the final week of June, and it has gained 1.3% for the day, taking its market capitalization to $1.04 billion. It remains to be seen how these factors will play out in the coming days and weeks.

1. Traders might target the next support zone near $16.03 if the Ethereum Name Service (ENS) fails to hold the $20.85 level, as this could lead to increased selling pressure due to the identified support and resistance levels.
2. If demand does not keep pace with the full token supply unlock in December 2025, this could potentially exert downward pressure on ENS prices, as a growing circulating supply might not be matched by a proportional increase in demand.
3. ENS price forecasts show wide ranges and extreme volatility, with some analyses predicting short-term bearish behavior in 2025–2026, indicating uncertainty and hesitation among traders, often a precursor to selling pressure.

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