Date: Tue, May 20, 2025 | 05:50 AM GMT

After experiencing sharp volatility over the past three days, the cryptocurrency market is showing renewed strength. Bitcoin (BTC) has reclaimed the $106,000 mark, and Ethereum (ETH) is up more than 7% today—pushing major altcoins higher alongside it.

One of the standout performers is Ethereum Name Services (ENS), which has surged 7% today, extending its monthly rally to an impressive 54%. Now, a key technical pattern forming on the daily chart suggests the rally might be far from over.

Source: Coinmarketcap

Elliott Wave Impulse Pattern Signals More Upside

On the daily timeframe, $ENS is currently unfolding a textbook 5-wave Elliott Impulse pattern, reflecting strong and steady bullish momentum. This wave structure has already lifted the token nearly 68% since the initial breakout.

The third wave of this formation topped out around $25.16, after which ENS underwent a healthy correction down to $20.65—marking an 18% pullback from the recent high. Now, ENS is showing signs of recovery, with the price rebounding to around $22.50. This slight upward move could represent the beginning of Wave 5, which is typically the final bullish wave in an Elliott pattern.

ENS Daily Chart/Coinsprobe (Source: Tradingview)

If the current structure continues to unfold as expected, Wave 5 could push ENS as high as $31.58, suggesting a potential 39% gain from current levels. This projection also aligns closely with the 1.27 Fibonacci extension level drawn from the Wave 2 to Wave 4 sequence—an area often targeted in classic Elliott Wave setups.

What’s Next for ENS?

The key short-term support to watch is $20.65. Holding above this zone will be critical to keeping the bullish outlook intact. If ENS can maintain this level and gain fresh buying momentum, the stage may be set for Wave 5 to play out fully in the days ahead.

That said, the broader direction of the crypto market, especially Ethereum's ongoing performance, is likely to play a significant role in whether ENS can hit its bullish target. With ETH gaining strength again, this could act as a strong tailwind for ENS’s potential continuation to the upside.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.