Ethereum Name Service (ENS): The journey towards the $32 milestone and beyond

Ethereum Name Service (ENS) has extended its upward trend by more than 2% in the past 24 hours, rising from a mid-July low of 18 dollars to over 31 dollars.

This price increase coincides with a significant decrease in reserves on exchanges and a marked increase in withdrawals from the exchange, indicating strong accumulation signs.

However, will the price continue to rise or is there a looming profit-taking pressure?

**What does a large withdrawal from the exchange indicate?****?

According to data from CryptoQuant, more than 250,000 ENS tokens have been withdrawn from the top 10 exchanges around mid-July.

When comparing the ENS price with this data, it can be seen that the price has increased from 18 to 31.07 dollars at the time of writing. The token withdrawal activity is a signal that many investors have anticipated the price increase.

The amount of ENS withdrawn from the exchange | Source: CryptoQuantSince the outflow of funds from the exchange often indicates reduced selling pressure, the lack of new funds entering the exchange suggests that investors are still holding — perhaps expecting prices to rise further.

Momentum remains, but is approaching resistance

In terms of price action, ENS is currently trading around $31. This price level coincides with changes in the market structure of ENS, as it starts to form higher lows – a sign that an uptrend is developing.

Supporting this bullish outlook are the Chaikin Money Flow (CMF) and MACD indicators, both of which are favoring an upward trend. CMF is currently at 0.1, while MACD has moved into the green zone at the time of writing. However, momentum shows signs of slowing down, possibly due to the price encountering resistance around the $31 level.

Source: TradingViewIn addition, the price of ENS may also maintain around the 31 dollar range, causing some investors to take profits due to fear of losing the accumulated gains.

If ENS can break through and maintain stability above the $31 level, it will open up opportunities for an upward momentum towards $45. If the price recovers the $45 mark, bullish sentiment may increase, thereby pushing the price above $50.

However, is the liquidity sufficient to achieve this?

ENS is caught between liquidity zones

According to the liquidation heat map in the last 24 hours from CoinGlass, ENS is being squeezed between two important liquidity zones. The liquidity above the $32–34 zone could act as a trigger for a short squeeze, driving a bullish breakout.

Conversely, liquidity below the $29 zone — especially near the $26 level — poses downside risks if Long positions are liquidated en masse.

Source: CoinGlassIf ENS holds above the $31 level and triggers liquidation orders near $32, the price could be pushed up to the $34–35 range.

However, if the support level at 29 dollars is broken, impatient investors may exit their Long positions, pulling the price down to 26 dollars before a potential recovery.

Dinh Dinh