ENS Technical Analysis Feb 4

ENS is trading in a critical squeeze zone at $6.78; while RSI reaching oversold levels like 24.94 offers recovery potential, the ongoing downtrend and Bitcoin’s weakness make both scenarios possible.

Current Market Situation

ENS is trading at $6.78 with a 2.45% drop in the last 24 hours and is squeezed in the $6.44-$7.05 range. Volume remains at a moderate $19.95M level, while the overall trend continues downward. RSI at 24.94 signals the oversold region, increasing the likelihood of a short-term reaction buy. However, MACD shows a negative histogram and the price remains below EMA20 ($8.49), maintaining short-term bearish pressure. The Supertrend indicator gives a bearish signal and $8.62 resistance forms a strong barrier. In multi-timeframe (MTF) analysis, 10 strong levels were identified across 1D, 3D, and 1W charts: 1D has 1 support/2 resistance, 3D has 0 support/2 resistance, 1W has 3 support/3 resistance balance. Critical support at $6.40 (score 82/100), resistances at $6.96 (62/100) and $7.5776 (62/100). This structure provides traders with clear invalidation points for both breakout and breakdown scenarios.

Scenario 1: Bullish Scenario

How Does This Scenario Unfold?

For the bullish scenario, $6.96 resistance must first be clearly broken with a close above it, which could reverse short-term momentum. If $7.5776 is then tested and broken, momentum gains speed toward EMA20 ($8.49). RSI exiting oversold (above 30) and MACD histogram approaching zero would serve as confirmation signals. Notable volume increase and Bitcoin stabilization would strengthen this scenario. The trend change is confirmed when Supertrend turns bullish. Invalidation level is $6.40 support; a break below it completely invalidates the bullish possibility. Traders can monitor current charts on the ENS Spot Analysis page.

Target Levels

First target is $8.62 Supertrend resistance, followed by $10.3461 (score 30) as the main target. This level aligns with Fibonacci extension levels on the 1W chart. Under more optimistic conditions, $12 area could become intermediate targets, but these depend on BTC correlation. Risk/reward ratio looks reasonable at around 1:2.5 from a $6.78 entry, but always apply your own risk management.

Scenario 2: Bearish Scenario

Risk Factors

The bearish scenario is triggered by a break below $6.40 support; this level (score 82/100) carries high importance, and a close below it directs momentum downward. A breakdown supported by deeper negative MACD divergence, RSI dropping below 20, and declining volume is expected. Even Bitcoin failing to break $75,724 support could create additional pressure on ENS, as general weakness prevails in altcoins. The 2 resistance levels on the 3D chart limit recovery, and if Supertrend remains bearish, the trend continues. Invalidation occurs with a break above $6.96 resistance. For futures trading, follow the ENS Futures Analysis page.

Protection Levels

First protection is around $5.50 below $6.40 as intermediate support, with the main target at $2.1234 (score 22). This level aligns with 1W lows and Fibonacci retracements. In deeper drops, watch the $4.00 area; risk/reward here approaches 1:3. In this scenario, stop-losses should be positioned above $6.96.

Which Scenario to Watch?

Key triggers: For bullish, volume close above $6.96 and RSI above 30; for bearish, close below $6.40 and absence of MACD divergence. Confirmation signals include 4-hour candle formations (bullish engulfing vs bearish pinbar) and volume profile. MTF alignment is critical: 1D breakout coinciding with 3D/1W resistances would remain weak. Traders should manage positions using clear invalidations for both scenarios – e.g., $6.40 stop on longs, $6.96 stop on shorts.

Bitcoin Correlation

BTC is in a downtrend at $75,935 with a 3.72% drop; Supertrend bearish and supports at $75,724, $72,946, $61,211. Altcoins like ENS are highly correlated to BTC (%0.85+), so BTC failing to break $77,864 resistance could limit ENS upside. If BTC slips below $75,724, ENS $6.40 breakdown accelerates; otherwise, recovery toward $82,178 supports ENS bull scenario. Rising BTC Dominance adds extra risk for altcoins.

Conclusion and Monitoring Notes

ENS is at a turning point right now: Watch for oversold bounce or trend continuation. Key monitoring points: $6.96 (bull trigger), $6.40 (bear trigger), RSI/MACD divergences, and BTC $75,724. Volume increase is confirmatory in either scenario. Traders should make decisions based on their own analysis; market is volatile, risk management is priority. Visit ENS Spot and Futures pages for current data.