Ethereum Name Service (ENS) rallied over 50% between July 12 and July 16, triggering a bullish outlook from multiple technical analysts who now forecast a continued move toward $50. The surge followed a breakout above a descending trendline that had suppressed ENS’s price since January 2025.
Chartist @WorldOfCharts1 identified a 110% upside potential from the breakout point, targeting $48.75. He described the breakout as a structural reversal that could mirror previous cycles. Another trader, @niklas_zamzow, noted ENS’s repeating wedge breakout pattern and cited the $27 yearly open as a key resistance level. According to his analysis, the current pattern could extend toward $35 and possibly reach $50 if $27 is broken on a closing basis.
These analysts agree that the $27 level will decide whether ENS can continue higher or get rejected.
Price Action Confirms Breakout, But $27 Resistance Still Holding
ENS price rose from $17.40 to a high of $27.15 in just four trading days. As of July 16, the token was consolidating around $26.20 — just below the critical $27 resistance level. The price has flipped prior resistance at $24.50 into support and reclaimed the 20, 50, 100, and 200-day exponential moving averages for the first time since February 2025.
On the daily chart, $27 aligns with the yearly open and the upper boundary of a former range. A strong close above this level could trigger the next leg higher toward $32–$33, where ENS last topped in Q1 2025. Failure to break above it could stall the rally and trigger a short-term correction back toward $22–$24.
Volume Spikes 220%, But User Participation Remains Low
ENS’s breakout was accompanied by a sharp rise in trading activity. The 24-hour trading volume rose by 220%, reaching $424.36 million. Market capitalization also climbed to $957.8 million. However, these gains are not yet supported by user engagement on the Ethereum Name Service protocol.
Santiment data shows that daily active addresses stood at just 346 on July 10 — unchanged from prior weeks and far below the 13,000+ addresses seen during ENS’s 2021 peak.
Network growth, which measures the number of new wallets interacting with ENS, dropped to 305 during the same period. This suggests the rally is being driven by market speculation rather than new demand for ENS services.
Domain Registrations and ENS Wallet Activity Show No Rebound
Dune Analytics data further supports the case for weak fundamentals. While ENS has seen over 1.63 million names created and 767,194 participating wallets historically, current activity remains subdued.
Monthly .eth domain registrations have dropped below 50,000 — a steep decline from the 2022 peak of 437,000. New wallet creation and primary name settings have also slowed. In July 2025, new ENS-related addresses are trending below 20,000, down from over 40,000 earlier in the year.
Despite the token’s recent price performance, these metrics show no sign of renewed organic growth.
Both @WorldOfCharts1 and @niklas_zamzow maintain a bullish bias based on price structure and historical breakout patterns. Their $50 target remains valid as long as ENS holds above the trendline and closes above $27.
However, the lack of growth in user activity, domain registrations, and wallet participation presents a significant divergence between price and protocol usage. Without a corresponding uptick in demand, the technical rally may face exhaustion before reaching higher targets.
