Why did the price of ENS fall?

Ethereum Name Service (ENS) dropped 3% in the last 24 hours, underperforming the overall crypto market, which fell just 0.29%. The main reasons for this decline are:

1. Security concerns – A serious security issue involving an npm package linked to ENS raised worries about the safety of its ecosystem.
2. Technical weakness – ENS’s price fell below an important support level at $10.17, triggering automatic sell orders.
3. Market sentiment shift – Interest in altcoins slightly decreased as Bitcoin’s market dominance increased to 58.5%.

Deep Dive

1. Security Risks Shake Investor Confidence (Negative Impact)

Overview:
Between November 21-23, 2025, a cyberattack affected over 400 npm packages connected to ENS, including key developer tools like ethereum-ens. Hackers inserted malicious code that stole credentials and created backdoors, raising concerns about the security of ENS’s infrastructure.

What this means:

• Developers might hold off on integrating ENS until thorough security checks are completed, slowing down its growth.
• Past security breaches in crypto projects have led to short-term price drops of 5-15%, such as Chainlink’s oracle breach in 2024.
• Negative news likely caused panic selling among retail investors, reflected in a 43.95% spike in ENS trading volume.

What to watch:
Look for clear communication from ENS Labs about how they’re fixing these issues and monitor the trading activity of large holders (those with 1 million or more ENS tokens).

2. Technical Breakdown Worsens the Decline (Negative Impact)

Overview:
ENS’s price fell below the 50% Fibonacci retracement level at $10.17 and its 7-day moving average of $10.64. The MACD indicator (+0.0977) shows that bullish momentum is weakening, even though a positive crossover occurred.

What this means:

• Automated trading systems likely triggered stop-loss orders once the price dropped below $10.17, accelerating the decline.
• The Relative Strength Index (RSI) at 47.79 is not yet oversold, suggesting there could be more room for the price to fall toward $9.84, the next key support level (61.8% Fibonacci retracement).
• A bearish divergence between price and RSI since December 2025 indicates weakening buying interest.

Key level to watch:
If ENS closes below $9.84 for a sustained period, it might retest its November low of $8.80.

Conclusion

ENS’s recent drop is due to a combination of security concerns specific to the project and weakening technical indicators, along with a cautious mood in the altcoin market. Although the npm package issue seems to be under control, traders are factoring in short-term risks to ENS’s reputation and protocol safety.

Key question: Can ENS hold above $9.84, or will the downward trend continue toward its yearly lows? Keep an eye on upcoming governance updates from ENS Labs for updates on security improvements.

What could affect the price of ENS?

Ethereum Name Service (ENS) is facing mixed signals: promising technical upgrades but challenging market conditions.

1. ENSv2 & Partnerships – A major upgrade called ENSv2, planned for 2026, aims to improve cross-chain functionality and lower transaction costs, which could increase its usefulness. However, delays might slow down adoption.
2. Market Sentiment Shift – Large investors (whales) have been accumulating ENS tokens, and a recent Coinbase listing could help offset weakness in the altcoin market.
3. Regulatory Scrutiny – Upcoming global digital identity regulations could either boost or limit ENS’s main use cases.

Deep Dive

1. ENSv2 & Ecosystem Growth (Positive Outlook)

Overview:
ENS is working on ENSv2, a new version of its system that uses advanced technology called ZK-rollups to create a "Namechain." This upgrade, expected in 2026, will allow ENS names to work across different blockchains, reduce transaction fees by about 90%, and connect traditional web domains through a service called Doma. Partnerships with companies like Gemini (for wallet subnames) and Coinbase (for migrating .cb.id domains) are expanding ENS’s real-world applications. In October 2025, registrations of .eth names increased by 8% month-over-month to around 910,000, showing growing interest.

What this means:
These improvements could increase demand for ENS tokens by generating more revenue from name registrations and encouraging more community participation in governance. Historically, ENS prices have jumped after major updates—for example, a 38% rise in July 2025 following the Coinbase Germany listing. If ENSv2 delivers a smooth user experience as planned, it could attract new users and push prices toward the $20–$25 range.

2. Market Sentiment & Whale Activity (Mixed Signals)

Overview:
ENS’s price has dropped 68% compared to last year but shows signs of recovery. A major investor, Trend Research, bought 20.3 million ENS tokens (worth $5.5 million) in July 2025. Daily active users remain steady at about 90,000. However, the overall altcoin market is still fragile, with ENS’s 30-day price volatility at -6.83%. Data from derivatives markets shows more traders betting on price drops than rises, with shorts making up 55% of positions in July 2025.

What this means:
Large investors accumulating ENS could help stabilize or even boost prices if smaller investors follow their lead. But the high number of short positions and significant token transfers to exchanges (about $3.46 million in July 2025) suggest some investors are taking profits. In a strong crypto market, ENS might test the $18–$20 price range; if market sentiment worsens, prices could fall back to $8–$10.

3. Regulatory Risks & Competition (Potential Challenges)

Overview:
ENS faces uncertainty as governments worldwide work on new digital identity laws, such as the European Union’s eIDAS 2.0 framework. Competitors like Unstoppable Domains are gaining market share. Additionally, a security issue in November 2025 involving an npm package was quickly fixed but highlighted potential vulnerabilities.

What this means:
If regulations support decentralized digital IDs, ENS could become a standard in Web3 identity, boosting its value. On the other hand, strict rules or a competitor landing a major partnership could reduce ENS’s market share. The recent security incident could hurt user trust, possibly leading to fewer registrations and lower token demand in the short term.

Conclusion

ENS’s future price depends on successfully launching ENSv2 while navigating regulatory changes and a volatile altcoin market. Token holders should watch for updates from the November Devconnect event about user experience improvements and keep an eye on regulatory developments expected in early 2026. The key question remains: will ENS’s technology upgrades overcome current market challenges?

What are people saying about ENS?

The conversation around Ethereum Name Service (ENS) reflects cautious optimism mixed with bets on the future of Web3 identity. Here’s what’s trending:

1. EdgenTech predicts a possible $20 price retest if positive Web3 sentiment returns 🚀
2. Biconomy’s ENS listing creates hopes for increased liquidity, despite bearish market signals 📉
3. ENSv2 upgrades boost confidence in ENS as a key part of Web3 infrastructure 🌐

Deep Dive

1. @EdgenTech: ENS’s Web3 Identity Stress Test Bullish

“Next month could be the stress test for Web3 identity. Will $ENS reclaim $20?”
– @MrMinNin (3.5K followers · 12K+ impressions · 2025-10-22 19:36 UTC)
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What this means: EdgenTech is optimistic about ENS, pointing to an 8% increase in domain registrations month-over-month and a 12% rise in decentralized exchange (DEX) trading volume week-over-week. The $20 price level is seen as a key psychological milestone tied to growth in the Ethereum ecosystem.

2. @BiconomyCom: ENS/USDT Listing Hype Neutral

“ENS spot trading now live! Web3 naming system for human-readable addresses.”
– @BiconomyCom (220K+ followers · 48K impressions · 2025-11-26 09:49 UTC)
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What this means: The listing makes ENS more accessible to traders, but the price dropped 3.21% within 24 hours after the announcement. This reflects broader market caution, as shown by the Crypto Market Cap (CMC) Fear & Greed Index sitting at 41 out of 100, indicating a neutral to slightly fearful market sentiment.

3. @ensdomains: ENSv2 & App Launch Bullish

“ENS App and Explorer debut – foundation for decentralized identity.”
– @ensdomains (266K+ followers · 189K impressions · 2025-11-05 15:16 UTC)
View original post
What this means: The launch of the ENS App and Explorer is a positive development, aiming to make Web3 easier to use. With over 910,000 active ENS domains, this shows strong real-world adoption, even though ENS’s price remains 68% below its all-time high.

Conclusion

The outlook for ENS is mixed. While the price has dropped 28% over the past 60 days, ENS remains a crucial part of Ethereum’s identity system. Traders are watching the $12–$13 support zone closely, while developers are betting on ENSv2’s Layer 2 integrations to lower transaction costs and expand use cases. The $20 resistance level is key—breaking above it could confirm ENS’s role as the “Web3 DNS,” but failing to do so might lead to testing new lows in 2025.

What is the latest news about ENS?

Ethereum Name Service (ENS) is navigating market challenges and technical improvements. Here’s a quick summary of recent developments:

1. $15M WBTC-ETH Trades Raise Eyebrows (Jan 7, 2026) – World Liberty Finance (WLFI) made algorithm-driven trades that sparked insider trading rumors.
2. Bubblemaps Disputes Insider Trading Claims (Jan 6, 2026) – Analysts disagreed over alleged connections between WLFI and controversial bets.
3. ENSv2 Launches User-Friendly Upgrade (Dec 22, 2025) – A new version simplifies on-chain identity management, similar to Shopify’s ease of use.

In-Depth Look

1. $15M WBTC-ETH Trades Raise Eyebrows (Jan 7, 2026)

What happened:
WLFI carried out $15 million worth of Wrapped Bitcoin (WBTC) and Ethereum (ETH) trades using Cow Protocol. The trades followed a specific pattern, suggesting automated arbitrage strategies. Blockchain investigators found links between ENS domains and WLFI’s co-founder, leading to speculation about insider information.

Why it matters:
This doesn’t directly affect ENS’s technology but highlights both the opportunities and risks in decentralized finance (DeFi). Increased regulatory attention on fast, algorithmic trading could impact tokens in the ENS ecosystem indirectly. (CoinMarketCap)

2. Bubblemaps Disputes Insider Trading Claims (Jan 6, 2026)

What happened:
Bubblemaps challenged reports claiming a “99% match” between certain political bets on Polymarket and wallets linked to WLFI. They argued that similarities in transaction timing and wallet names don’t prove insider collusion.

Why it matters:
This is positive news for ENS, as it helps clear up false rumors about insider trading. It also highlights the importance of careful blockchain analysis before making accusations. (CryptoPotato)

3. ENSv2 Launches User-Friendly Upgrade (Dec 22, 2025)

What happened:
ENS Labs introduced ENSv2, which uses a technology called ZK-rollup (Namechain) to reduce transaction fees and support .eth names across multiple blockchains. They also partnered with D3 to allow traditional domain names like .com to be tokenized as ENS-compatible assets.

Why it matters:
This upgrade makes ENS more scalable and easier to use, positioning .eth as a key digital identity for Web3. The simplified registration process, inspired by platforms like Shopify, could encourage widespread adoption. (CCN)

Conclusion

ENS is balancing market uncertainties with important upgrades. While trading controversies highlight challenges in DeFi transparency, ENSv2’s focus on user experience could make on-chain identity mainstream. The question remains: will regulatory pressures slow innovation, or will a smoother user experience help ENS reach everyday users?

What is expected in the development of ENS?

I wasn’t able to find useful information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. In the meantime, please feel free to choose another question or cryptocurrency for analysis.

What updates are there in the ENS code base?

The latest updates to the Ethereum Name Service (ENS) focus on strengthening security and improving the system’s infrastructure to make it more reliable and scalable.

1. Security Fix for npm Attack (November 24, 2025) – Fixed a supply-chain attack that affected some software packages, updating vulnerable parts to protect users.
2. ENSv2 Namechain Layer 2 Launch (November 18, 2025) – Announced moving core functions to a new Layer 2 solution called a ZK-rollup, making transactions faster and cheaper.

Deep Dive

1. Security Fix for npm Attack (November 24, 2025)

What happened: A serious security issue was found in some npm packages used by ENS developers. A malware called the "Shai-Hulud" worm was inserted into over 40 @ensdomains packages. This malware tried to steal developer login details during installation.

ENS Labs quickly released updated, secure versions of these packages, changed the affected credentials, and recommended developers clear their caches and update their software. Importantly, the main ENS system and user assets were not harmed.
Why it matters: This quick response helps build trust in ENS’s security. However, there is still a risk if similar attacks happen in the future.
(Source: Coinspeaker)

2. ENSv2 Namechain Layer 2 Launch (November 18, 2025)

What happened: ENS is upgrading to ENSv2 by moving its core operations to a new system called Namechain. Namechain uses a technology called a ZK-rollup, developed with Taiko and Nethermind’s Surge framework. This change cuts transaction costs by about 90% and speeds up processing from hours to just seconds.

The upgrade uses “based rollups” to stay fully compatible with Ethereum and adds a feature called preconfirmations, which helps transactions finalize almost instantly. A public test version is expected in the second quarter of 2026.
Why it matters: Lower fees and faster transactions could encourage more people to use .eth domain names. However, if the migration process is complicated, it might slow down user adoption.
(Source: CoinMarketCap)

Conclusion

ENS is actively improving its security while moving to a more scalable Layer 2 infrastructure. This approach balances immediate protection against threats with long-term improvements in usability. The upcoming ENSv2 testnet will be key to seeing how developers respond to these changes this year.