Why did the price of ENS fall?

Ethereum Name Service (ENS) dropped 1.12% to $8.89 in the past 24 hours, adding to a 6.43% loss over the last week. This small decline fits with a broader pullback in the crypto market and shows ongoing technical weakness. Here are the main reasons:

1. Technical Downtrend – Key indicators show selling pressure, with ENS trading below important moving averages.
2. Weak Market Sentiment – The overall crypto market is in a "Fear" phase, reducing interest in altcoins like ENS.
3. Security Concerns – A major supply chain attack on npm packages related to ENS in late November 2025 still affects investor confidence.

Deep Dive

1. Technical Downtrend (Bearish Impact)

Overview: ENS is currently priced at $8.89, below its 7-day average price of $9.03 and 30-day average of $9.98. The MACD indicator is negative, and the RSI (Relative Strength Index) is at 32.68, suggesting the asset is oversold but hasn’t yet started to recover.

What this means: These signals point to continued downward momentum. ENS is stuck in a downtrend and hasn’t regained stronger support levels. Although the oversold RSI indicates selling might be slowing, without positive news or market changes, the price could stay low or drop further.

What to watch: If ENS moves above the 7-day average near $9.03, it might see a short-term bounce. But if it falls below the recent low of $8.45, it could trigger another drop.

2. Weak Broader Market Sentiment (Bearish Impact)

Overview: The total value of all cryptocurrencies fell 0.73% in the last day. The CoinMarketCap Fear & Greed Index is at 29, which is considered "Fear" territory (CoinMarketCap).

What this means: Altcoins like ENS often follow the overall market mood. When fear dominates, investors tend to avoid riskier assets. This cautious sentiment makes it harder for ENS to recover quickly.

3. Lingering Security Concerns (Bearish Impact)

Overview: In late November 2025, over 40 ENS-related npm packages were compromised in a major supply chain cyberattack (Coinspeaker). Although the ENS team responded quickly and user funds were safe, such incidents can hurt long-term trust.

What this means: Security issues can leave a lasting shadow on a project’s reputation. Even though the problem was fixed, some investors remain cautious, especially when the market is already weak and negative news gets more attention.

Conclusion

ENS’s recent drop reflects ongoing technical weakness, a cautious crypto market, and lingering concerns from past security problems. For investors, this means continued price swings with a tendency to stay within a range unless there’s a strong positive event for ENS or the broader market.

Key level to watch: Can ENS hold the support at $8.45, or will it fall further to test its October 2023 low near $6.70?

What could affect the price of ENS?

ENS is facing both opportunities and challenges ahead.

1. ENSv2 Upgrade: Moving to a new technology called a ZK-rollup (Namechain) in 2026 could cut transaction fees by about 90%, making it easier and cheaper to use.
2. Growing Competition: Competitors like Unstoppable Domains are challenging ENS’s strong hold on the market, pushing ENS to keep innovating.
3. Regulatory Uncertainty: Unclear rules around digital identities could slow down adoption by businesses and institutions.

Deep Dive

1. ENSv2 Upgrade (Positive Outlook)

What’s happening: In 2026, ENS plans to upgrade to "Namechain," a ZK-rollup built with Taiko’s technology. This upgrade aims to drastically reduce transaction fees (also called gas fees) by around 90% and allow almost instant name resolution across different blockchains. The test version is already running, with the full launch expected by mid-2026.
Why it matters: Lower fees and faster service could lead to more people registering .eth domain names, which has already been growing by about 8% month-over-month. Past upgrades like this (for example, Polygon’s Layer 2 solution) have often led to increased value for the related tokens because the service becomes more useful and accessible.

2. Market Competition (Mixed Impact)

Current situation: ENS currently controls about 85% of the Ethereum naming market. However, competitors like Unstoppable Domains offer cheaper domains that work across multiple blockchains. New players, such as Shido Network’s naming service launched in November 2025, are also entering the space, making the market more fragmented. ENS is responding by adding features like social recovery (helping users regain access if they lose their keys) and integrating with traditional Domain Name System (DNS).
What this means: Competition may push prices down but also encourages ENS to innovate and improve. However, if the market becomes too fragmented without a common standard for interoperability, ENS’s dominant position could weaken.

3. Regulatory Uncertainty (Potential Challenges)

Background: The European Union’s MiCA regulation currently excludes decentralized naming services like ENS, creating uncertainty about how these services will be regulated. In the U.S., the SEC’s 2025 lawsuit against a similar service called Handshake has set a precedent that could lead to increased scrutiny.
Impact: This lack of clear regulation might make banks and other institutions hesitant to adopt .eth domains. Regulatory concerns could slow down partnerships with financial and government organizations, limiting ENS’s growth in the near term.

Conclusion

ENS’s future depends on successfully launching ENSv2 and navigating unclear regulatory environments. Investors and users should watch for the Namechain mainnet launch and any changes to regulations like MiCA. The big question is whether ENS can use its early lead to become the go-to identity system for Web3, or if regulatory hurdles and competition will hold it back.

What are people saying about ENS?

The conversation around Ethereum Name Service (ENS) shows a mix of optimism and caution. Here’s what people are saying:

1. Arsh: Positive about ENS’s identity upgrade driving price gains.
2. Biconomy: New exchange listing boosts confidence in accessibility.
3. Mr MinNin: Mixed feelings as growth in registrations faces price resistance.
4. ENS Domains: Product updates strengthen ENS’s role in Web3 identity.

In-Depth Look

1. @arsh_thinks: Identity Upgrade Sparks Optimism

"BIG MOVE ALERT $ETH: The Ethereum Name Service (ENS) is PUMPMING as decentralized identity management gets a major upgrade..."
– @arsh_thinks (692 followers · January 18, 2026)
View original post

What this means: This is good news for ENS. A key upgrade to the system that manages decentralized identities could make ENS more useful, increasing demand for .eth domain names as more people adopt Web3 technologies.

2. @BiconomyCom: New Exchange Listing Adds Momentum

"🚀NEW LISTING🔥 $ENS ... The #ENS / #USDT spot trading pair is now available!🔥"
– @BiconomyCom (219,891 followers · November 26, 2025)
View original post

What this means: This is positive for ENS because being listed on more exchanges makes it easier for people to buy and sell ENS tokens. This can attract more investors and increase trading activity.

3. @MrMinNin: Growth Meets Price Resistance

"🔥 Is $ENS about to make a comeback next month? ... New domain registrations up 8% MoM ... Strong support: $12–13; Resistance: $20–25"
– @MrMinNin (3,512 followers · October 22, 2025)
View original post

What this means: This is a mixed signal. While more people are registering ENS domains, which shows growing interest, the price faces a challenge between $20 and $25. Breaking through this resistance will require strong buying pressure.

4. @ensdomains: Product Updates Boost Utility

"Missed the latest in ENS? ... ENS App and Explorer launched ... Traditional domains can now behave like ENS names"
– @ensdomains (265,873 followers · November 5, 2025)
View original post

What this means: This is encouraging for ENS. New tools and features, including the ability for traditional domain names to work like ENS names, expand how people can use ENS. This could help bring more users into the Web3 ecosystem.

Conclusion

The outlook for ENS is mixed. There are clear signs of growing adoption and product improvements, but the price faces technical resistance around $20. Watch to see if ENS can break above this level to confirm a bullish trend, or if it stays below, signaling caution among investors.

What is the latest news about ENS?

Ethereum Name Service (ENS) is making waves with big trades and important upgrades. Here’s the latest update:

1. Whale Makes $73M Ethereum Short Using ENS Address (January 21, 2026) – A major trader using the ENS name "pension-usdt.eth" closed a $4 million Bitcoin loss and opened a huge short position on Ethereum, showing how ENS is used in high-value trading.
2. ENS Protocol Upgrade Opens New Doors (January 18, 2026) – A significant update to ENS’s decentralized identity system sparked interest and boosted its potential.
3. $100 Price Target for ENS Gains Attention (January 17, 2026) – Analysts are optimistic about ENS’s future, pointing to its role in Web3 and growing utility.

1. Whale Makes $73M Ethereum Short Using ENS Address (January 21, 2026)

What happened: A big trader, identified by the ENS name "pension-usdt.eth," closed a leveraged Bitcoin position with a $4.09 million loss and then opened a $73.54 million short position on Ethereum. This shows how ENS makes it easier to handle large crypto trades by replacing complicated wallet addresses with easy-to-read names like "pension-usdt.eth."
Why it matters: This doesn’t change ENS’s core technology but highlights its real-world use among experienced traders. It confirms ENS’s value in simplifying complex transactions in the crypto market.
(BitcoinWorld)

2. ENS Protocol Upgrade Opens New Doors (January 18, 2026)

What happened: ENS announced a major upgrade to its decentralized identity system, improving features like cross-chain compatibility and user verification. While technical details are limited, this fits with ENS’s plan to boost scalability and make the service easier for everyday users.
Why it matters: This upgrade is positive for ENS because new features usually increase demand. Better tools could speed up the adoption of .eth names, though the full impact depends on how quickly developers and users embrace the changes.
(@arsh_thinks)

3. $100 Price Target for ENS Gains Attention (January 17, 2026)

What happened: Several analysts have set a price target of up to $100 for ENS by 2030. They base this on ENS’s dominant market share in decentralized naming, token-burning from domain renewals, and improvements in Ethereum’s network. These forecasts assume widespread Web3 adoption and ENS expanding beyond just address names to include things like credential verification.
Why it matters: This is a hopeful outlook but doesn’t guarantee short-term price increases. The value of ENS tokens will depend on Ethereum’s growth and how many people use .eth names in real life.
(BitcoinWorld)

Conclusion

ENS is gaining attention from big traders, evolving its technology, and inspiring optimistic price forecasts. Its success ultimately depends on Ethereum’s growth and how quickly ENS can make digital identity easy and useful for everyday users. Will 2026 be the year ENS drives mainstream adoption?

What is expected in the development of ENS?

ENS is making steady progress with these key updates:

1. ENS App & Explorer User Testing (Ongoing) – Finalizing new tools to help users manage their .eth names and explore the ENS ecosystem.
2. Filecoin Onchain Cloud Mainnet Launch (January 2026) – Launching decentralized, verifiable storage for websites and data linked to ENS names.
3. ENSv2 Public Testnet on Namechain (Q2 2026) – Testing a Layer 2 solution to significantly lower transaction costs for ENS users.

In-Depth Look

1. ENS App & Explorer User Testing (Ongoing)

What’s happening: ENS Labs is currently testing two new products: the ENS App and the ENS Explorer (ensdomains). The ENS App will be the main way people manage their .eth names and web3 identities. The Explorer helps users search for ENS names and view related information. This testing phase is focused on making the experience smooth and easy before the full public release.

Why it matters: A simple, user-friendly app is essential for getting more people to use ENS. If testing goes well, it could lead to more users signing up and managing their decentralized identities.

2. Filecoin Onchain Cloud Mainnet Launch (January 2026)

What’s happening: ENS is partnering with Filecoin Onchain Cloud to offer decentralized storage for website content and other data linked to ENS names (U.Today). After a testnet launch in November 2025, the full mainnet release is planned for January 2026. This means developers can create websites where the data is stored securely and transparently on Filecoin’s decentralized network.

Why it matters: This expands ENS beyond just linking names to addresses. Decentralized storage makes ENS a stronger foundation for building a fully decentralized web, increasing its usefulness and appeal.

3. ENSv2 Public Testnet on Namechain (Q2 2026)

What’s happening: ENSv2 is a major upgrade moving core ENS functions from Ethereum’s mainnet to a Layer 2 solution called Namechain, built using Taiko’s rollup technology (CoinMarketCap). The goal is to drastically reduce transaction fees for registering and renewing ENS names. The public testnet is expected to launch in the second quarter of 2026.

Why it matters: High transaction fees have been a big hurdle for many users. Lower costs could lead to a surge in new registrations and help ENS maintain its leadership in web3 naming services.

Conclusion

ENS is focused on improving how people use and interact with decentralized identities by enhancing usability, expanding features, and making the system more scalable. The success of ENSv2 could be the key to unlocking millions of new .eth registrations and driving widespread adoption.

What updates are there in the ENS code base?

Ethereum Name Service (ENS) has recently improved security, upgraded its infrastructure, and introduced new user-friendly products.

1. Security Update & Credential Reset (Nov 24, 2025) – Fixed a security issue caused by a supply chain attack on npm packages by updating software and changing access credentials.
2. Namechain Layer 2 Migration (Nov 18, 2025) – Announced moving ENSv2 to a faster, more affordable system called Taiko-based rollup to improve transaction speed and reduce costs.
3. ENS App & Explorer Launch (Nov 5, 2025) – Released new tools for managing digital identities with easy profile customization and no transaction fees for certain actions.

In-Depth Look

1. Security Update & Credential Reset (Nov 24, 2025)

What happened: ENS responded quickly to a supply chain attack that affected over 40 npm software packages. Attackers inserted malicious code that stole credentials during installation, which was then posted publicly on GitHub. ENS Labs detected the issue within hours, revoked compromised keys, and advised developers to clear caches and update credentials. Importantly, no user assets were affected.

Why it matters: This shows ENS’s strong security response but also highlights risks in the broader software ecosystem. Users are safe, but developers need to stay alert to such threats. (Coinspeaker)

2. Namechain Layer 2 Migration (Nov 18, 2025)

What happened: ENS announced that ENSv2 will move its Namechain to a Layer 2 solution called a Taiko-based ZK-rollup. This technology reduces transaction fees (“gas fees”) and speeds up domain registration processes by handling operations off the main Ethereum blockchain. A test version will launch in mid-2026 for community testing before full deployment. Existing users won’t need to manually transfer their domain names; the system will handle it automatically.

Why it matters: This upgrade makes owning and using .eth domain names cheaper and faster, encouraging more people to adopt ENS. It also improves compatibility with other blockchain networks, expanding ENS’s role in decentralized finance (DeFi) and digital identity. (CMC Community)

3. ENS App & Explorer Launch (Nov 5, 2025)

What happened: ENS launched a new App and Explorer that serve as centralized places for users to manage their Web3 identities. Features include customizing profile headers without paying transaction fees and easily creating subdomains (like wallet.yourname.eth). The App also supports importing traditional domain names and managing addresses across multiple blockchain networks such as Arbitrum and Optimism.

Why it matters: These tools make it easier for users to create and manage decentralized identities, improving the overall experience and helping ENS reach a broader audience. (@ensdomains)

Conclusion

ENS’s recent updates focus on strengthening security, improving scalability with Layer 2 technology, and offering user-friendly identity management tools. These steps reinforce ENS’s position as a key naming system for Web3. Looking ahead, the enhanced cross-chain compatibility in ENSv2 could speed up its integration with emerging DeFi platforms and other blockchain ecosystems.