- Ethereum Name Service (ENS) token price has surged from less than $8 to over $22.
- It jumped after receiving an endorsement from Vitalik Buterin.
- Analysts expect the SEC will approve a spot Ethereum ETF soon.
Ethereum Name Service (ENS) price continued surging this week, making it one of the best-performing coins in the market. It peaked at $24.85 on Thursday, its highest point since May 2022. It has risen by more than 168% from its lowest level this year, beating many popular coins like Ethereum and Solana.
Why is ENS token surging?
Ethereum Name Service staged a strong rally since last week when it was vouched for by Vitalik Buterin, the founder of Ethereum. In a statement, he said that the service was super important in the crypto industry. This was a notable statement since Buterin is one of the most respected people in crypto.
The token continued accelerating this week as Ethereum price surged after the Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF. As I wrote on Thursday, all eyes are now on other coins that could see ETF applications.
Ethereum, as the second-biggest crypto in the world, will likely see applications. Blackrock has already filed for its iShares Ethereum Trust ETF while more like Franklin Templeton, Invesco, and Ark Invest will likely follow. This explains why Ethereum price surged to over $2,500 this week.
It also explains why other coins associated with Ethereum jumped. Ethereum Classic has risen by over 50% this week while EthereumPoW has not been left behind. The idea is that these coins will do well if ETH continues recovering.
However, as I warned, it is not mandatory that the SEC will use its precedence and approve a spot Ethereum ETF. Unlike BTC, Ethereum has transitioned into a Proof of Stake (PoS) coin and introduced staking features. As a result, the SEC sees it as a financial security that requires regulation. As such, there is a possibility that the SEC will reject or continuously delay the fund.
Ethereum Name Service price forecast
Turning to the daily chart, we see that the ENS token price has been in a strong bullish trend in the past few days. In this period, ENS has remained above all moving averages, signaling that bulls are in control. At the same time, oscillators like the Relative Strength Index (RSI) and Stochastic have pointed upwards.
Therefore, I suspect that the token will start pulling back in the coming days as investors look at the flows in Bitcoin ETFs. It will also retreat because of the changing estimates of the next Fed actions now that US inflation is still strong.
Data published on Thursday showed that the headline inflation rose by 3.4% in December. As a result, expectations are that the Fed will delay its interest rate cut until June next year. In this case, the ENS token price will likely retreat and retest the support at $20.
