ENS Technical Analysis Feb 24

ENS is showing a clear bearish trend with lower highs and lower lows recently; if the $5.75 swing low support breaks, the bearish structure may deepen, but BOS above $6.24 could signal a bullish reversal.

Market Structure Overview

ENS’s current market structure is characterized by a clear downtrend on 1D and higher timeframes. The price is trading at $5.95, consolidating in the $5.89-$6.31 range with a 2.62% drop in the last 24 hours. The overall structure follows a lower highs/lower lows (LH/LL) bearish pattern instead of higher highs/higher lows (HH/HL) bullish pattern. This indicates the trend is continuing in the bearish direction; staying below EMA20 ($6.60) reinforces the short-term bearish bias. MTF analysis (1D/3D/1W) identifies 7 strong levels: mostly supports (total 4S/3R), increasing the risk of a potential breakdown. Supertrend is giving a bearish signal and resistance is positioned at $7.54. The market is awaiting CHoCH (Change of Character); trend reversal looks difficult without breaking the current LH/LL sequence.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

Early signals for higher highs and higher lows are limited. Recently, the price tested the $6.2430 swing high and was rejected, reflecting a lack of bullish momentum. Although a positive histogram is visible on MACD (potential bullish divergence), RSI at 36.34 is near the oversold region but momentum has zeroed out. Critical for HH/HL structure: First, BOS above $6.2430 (61/100 score), then breaking EMA20 at $6.60 and forming a new HH are required. Currently, the $8.93 bullish target (26 score) is distant; only aggressive buying can trigger this structure. For short-term recovery, monitor the $6.31 24h high, but the overall trend remains bearish dominant.

Downtrend Risk

LH/LL pattern is clear: The latest swing high at $6.2430 failed to hold previous lows at $5.7530. This is the classic downtrend definition; price action cuts every rally with a lower high. $5.7530 swing low (75/100 score) is the main support; a break extends LH/LL and leads to the $2.5687 bearish target (22 score). Consistent with RSI decline, Supertrend bearish, and BTC downtrend pressuring altcoins. Risk increase: Additional LH formation on 3D/1W delays CHoCH.

Structure Break (BOS) Levels

BOS (Break of Structure) is the key to trend change. For bearish BOS: Close below $5.7530 swing low confirms LH/LL and targets new lower low. This level is a strong 1D support (75 score); breakout with volume brings aggressive downside. Bullish BOS: Impulse move above $6.2430 swing high invalidates LH and signals transition to HL sequence. Additional confirmation: $6.60 EMA20 and $7.54 Supertrend resistance. MTF shows 1W balance of 2S/2R, synchronized with $62k BTC support; BOS in either direction redefines the structure. Watch: Price pivots at $5.95; without BOS, range continues.

Swing Points and Their Importance

Recent Swing Highs

Latest swing high $6.2430 (61/100) is the peak of the recent rally and resistance. This level is part of the LH pattern; rejection shows seller dominance. Previous swing highs (around $6.31 24h) play a similar role. Importance: Breakout initiates bullish BOS and potential HH; failure deepens LH/LL. On the 1D chart, aligned with fib retracement 0.618 (61.8%), strong confluence.

Recent Swing Lows

$5.7530 swing low (75/100) is critical support and the latest LL. This point is the base of the downtrend; hold offers hope for HL, break leads to $2.56. LH/LL sequence with previous lows: Each bottom lower, bearish momentum. Importance: Defense line; volume hold sets up reversal, breakout continuation. MTF increases 3D/1W support confluence, linked to BTC $62.9k.

Bitcoin Correlation

BTC at $63,294 in downtrend (3.73% drop), Supertrend bearish; altcoins like ENS are highly correlated (0.85+). If BTC breaks $62,910 support, ENS tests $5.75; drop below $60k delays altseason. Conversely, BTC recovery above $64,632R triggers $6.24 BOS in ENS. Rising dominance (BTC bearish caution) crushes alts; ENS structure tied to BTC $49k deep support. Key: BTC key levels ($62.9S, $64.6R) direct ENS BOS – synchronized movement essential.

Structural Outlook and Expectations

Overall outlook bearish: LH/LL downtrend dominant, consolidation at $5.95 pivot. BOS levels decisive: $6.24+ bullish shift (CHoCH), $5.75- bearish extension. MTF balance (1D 1S/1R, 3D 1S/0R, 1W 2S/2R) risks downside; RSI/MACD divergences weak counter-signals. No news, focus on pure structure: Trend continuation likely, clean BOS required for reversal. Risk management: $5.75 stop, $6.24 target; high volatility, watch BTC. Educational note: HH/HL bullish bias, LH/LL bearish – current LH/LL gives short bias but watch BOS invalidation.