On February 6, 2024, the Ethereum Name Service (ENS) experienced a significant surge in price following its collaboration with the Web 2 domain registrar giant, GoDaddy. This partnership, established on February 5, 2023, enables users to seamlessly link their Web2 domain with a .eth domain without incurring additional costs.
The reason why ENS price soars
Investors from both web3 and web2 perceive this development as a noteworthy stride towards the Web 3 landscape, evident in the impact on the ENS price. After the partnership, GoDaddy’s President, Paul Nicks, conveyed his thoughts, expressing that the collaboration between Web3 and Web2 represents a fusion of domain names and blockchain technology. He emphasized that these technologies directly or indirectly contribute to the growth of Web2 and Web3 ecosystems.
In addition to the collaboration with GoDaddy, to enhance the effectiveness and power of this partnership, ENS introduced a new smart contract resolution process. This development in the resolution process under ENS enables DNS domain holders to effortlessly link their Web2 domains. Furthermore, it provides them with enhanced control over these evolving decentralized identities.
Amidst these optimistic developments in the realm of Web 3, ENS is currently trading near $22. In the last 24 hours, it has experienced a significant upside momentum of over 24%. Examining ENS over a longer period, in the last 7 days, it saw over 14% upside momentum, while in the last 30 trading days, ENS experienced a substantial over 70% upside momentum.
ENS technical analysis and its upcoming move
According to expert technical analysis, on January 1, 2024, ENS experienced a breakout of an inverted head and shoulders pattern. Since then, it has undergone a price surge of over 100% in just 36 days. However, following this substantial price increase, ENS is currently consolidating within a narrow range, facing resistance as an additional barrier.
Upon examining ENS on a weekly time frame, the chart indicates a clear presence of strong resistance near $25. On January 11, 2024, the ENS price was notably rejected from this level. Despite this, recent optimistic developments in ENS, currently it is once again approaching its resistance level near $25.
If ENS successfully breaks through this resistance level in the coming days, there is potential for a bullish move toward $37, another significant resistance level. This significant price surge of ENS comes during this time as top cryptocurrencies like Bitcoin, Ethereum, Solana, Ripple, and others are struggling to gain momentum.
