This is why the price of Ethereum Name Service (ENS) is soaring

Ethereum Name Service (ENS) has emerged as one of the best-performing cryptocurrencies this year. Its token has jumped for two consecutive weeks, reaching the highest point since January 2022.

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ENS has jumped more than 220% this year, while Ethereum and Bitcoin have jumped 57% and 47%, respectively. It also outperformed other popular cryptocurrencies such as Solana, Chainlink, and Cardano.

Because the ENS is on the rise

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Ethereum Name Service is one of the most popular names in the blockchain industry. It is a platform that allows users to easily register their .ETH domains by paying a small amount of money. For example, if your name is John, you will be able to create a john.eth domain.

This domain is important because it can then become your Web3 identity instead of the random characters associated with the industry. Ethereum Name Service is compatible with most blockchains, including popular names like Optimism, Solanam Arbitrum, and Base Blockchain.

Over the years, Ethereum Name Service has accumulated over 2.14 million names and 409 integrations. And analysts including Vitalik Buterin , they praised the platform’s vision of simplifying the Web 3 industry.

The price of the ENS token has increased as investors await the upcoming ENSv2 upgrade, which will focus on scalability, convenience, and flexibility. According to the upgrade roadmap, developers are now working on upgrading name resolution and managing reserve resolution.

The developers have not shared when the V2 update will happen. Based on the roadmap, there are signs that it will take a few months for the update to happen.

Cryptocurrencies are on the rise

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Ethereum Name Service also rose on Monday as other cryptocurrencies performed. After falling to $60,000 on Saturday, Bitcoin rebounded to $63,500, its highest point in nearly two weeks.

This bounce triggered a major jump in the cryptocurrency sector. Ethereum surged above $3,500 while Jasmy surged to $0.030. Some of the other top performing cryptocurrencies were Dogwifhat (WIF), Mog Coin, Beam, and Render Token. In most cases, altcoins jump when Bitcoin is doing well.

Meanwhile, there are signs that the SEC will approve an Ethereum spot ETF this quarter. Although the agency has sent S1 filings back to issuers, signs point to approval by the end of the quarter. The ENS token is expected to perform well when that happens.

The rally also came as a sense of calm spread after the French election in which right-wing popular parties won by a smaller margin than feared. As a result, global stock futures jumped and the U.S. dollar index retreated.

At the macro level, U.S. personal consumption spending (PCE) data showed inflation fell in May. Core PCE fell for the first time in six months, a welcome move by the Federal Reserve. Cryptocurrencies like Bitcoin and Ether do well in most cases when there is optimism about Fed cuts.

Ethereum Name Service Price Prediction

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ENS chart by TradingView

The daily chart shows that the ENS token price has seen a strong bull run over the past few months. This rally culminated with the token breaking above the crucial resistance point at $30.50, its highest point on March 5 this year. It also rose above the key psychological level at $30.

Ethereum Name Service has remained above the 50-day and 100-day exponential moving averages (EMA). The MACD, Relative Strength Index (RSI), and Stochastic Oscillator have moved to the overbought level.

Furthermore, the momentum oscillator has pointed upwards. Therefore, the token is likely to continue rising as buyers target the next key resistance point at $40. A drop below the support at $30.47 would invalidate the bullish view.